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4 Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.74 0.26 Stock A
4 Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.74 0.26 Stock A 0.31 0.09 Stock B Stock C 0.13 0.19 0.17 0.03 Book a. What is the expected return on an equally weighted portfolio of these three stocks? Print rences 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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