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10. Based on the following information State of Economy Probability of State of Economy Recession 20 Stock A Rate of Return 04 Stock B Pate

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10. Based on the following information State of Economy Probability of State of Economy Recession 20 Stock A Rate of Return 04 Stock B Pate of Return 20 Normal 50 08 Boom 20 20 16 60 a) Calculate the expected retum and standard deviation for the two stocks b) What is the expected return and variance of a portfolio invested 25% in A and 75% in B 11 Consider the following information

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