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2. Given the following information, what is the expected return of a portfolio, which is, invested 30 percent in both stocks A and C? And

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2. Given the following information, what is the expected return of a portfolio, which is, invested 30 percent in both stocks A and C? And the standard deviation of the portfolio? State of Economy Boom Normal Recession Probability of State of Economy .10 Rate of Return if State Occurs Stock A Stock B Stock C .12 .03 .07 .05 .28 .18 .09 .15 -.40 - 22

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