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

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20 .04 20 10. Based on the following information: State of Economy Probability of State of Stock A Stock B Economy Rate of Return Rate of Return Recession Normal .60 20 Boom 20 .16 .60 a) Calculate the expected return 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. .08 please post it as WORD with equation

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