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9. Returns and Variances [LO1] Consider the following information: State of Economy Boom Bust Probability of State of Economy 75 25 Rate of Return If

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9. Returns and Variances [LO1] Consider the following information: State of Economy Boom Bust Probability of State of Economy 75 25 Rate of Return If State Occurs Stock A Stock B Stock .08 .17 24 11 -05 -08 a. What is the expected return on an equally weighted portfolio of these three stocks? 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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