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8. Consider the following information about two stocks: Return if State Occurs Stock A Stock B State of Economy Boom Normal Bust Probability of State

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8. Consider the following information about two stocks: Return if State Occurs Stock A Stock B State of Economy Boom Normal Bust Probability of State 25.0% 45.0% 30.0% 25.0% 16.5% -1.0% 34.0% 14.0% -24.0% If your portfolio is invested 45% in Stock A and 55% in Stock B, what is the portfolio expected return? The portfolio standard deviation? Expected return Std Deviation

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