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a) Consider the following information: State ofEconomy Boom Good Poor Probability of State of Economy .10 .60 Rate of Return if State Occurs Stock A

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a) Consider the following information: State ofEconomy Boom Good Poor Probability of State of Economy .10 .60 Rate of Return if State Occurs Stock A Stock B Stock .35 45 .27 .16 .10 .08 -.01 -.06 -04 -.12 - 20 -.09 .25 Bust .05 Your portfolio is invested 35% each in A and C. and 30% in B. a) What is the expected return of the portfolio? b) What is the variance of this portfolio? c) What is the standard deviation

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