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2. Consider the following information: Rate of Return if State Occurs State of Probability of State of Economy Eronomy Boom 40 Good 25 Poor .30

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2. Consider the following information: Rate of Return if State Occurs State of Probability of State of Economy Eronomy Boom 40 Good 25 Poor .30 Bust .05 Stock A .18 -15 Stock B 40 22 -09 - 24 Stock C 29 -11 -06 -.09 01 -07 a. Your portfolio is invested 20 percent each in Stocks A and C and 60 percent in Stock B. What is the expected return of the portfolio? b-1. What is the variance of this portfolio? b-2. What is the standard deviation

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