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1. Two you helper your answer! 9. Returns and Standard Deviations. Consider the following information: 102 State of Economy Probability of State of Economy Rate

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1. Two you helper your answer! 9. Returns and Standard Deviations. Consider the following information: 102 State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom Bust .60 .40 .15 .03 .02 .16 .34 -.08 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C

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