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8.6 Suppose you are given the following information regarding rates of return (in percent) on three assets: Rate of Return (%) State of the Economy

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8.6 Suppose you are given the following information regarding rates of return (in percent) on three assets: Rate of Return (%) State of the Economy Probability Asset A Asset B Asset C 5 10 30 Expansion Recession 5 5 15 Normal 5 15 15 Calculate the expected rate of return and standard deviation for each asset as well as the covariance and correlation coefficient for each pair of assets

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