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A portfolio is invested 30 percent in both Stocks A and C, and 40 percent in Stock B. The risk free rate is 2.5%. The

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A portfolio is invested 30 percent in both Stocks A and C, and 40 percent in Stock B. The risk free rate is 2.5%. The following table contains the return and probabilities for the states of the economy Rate of Return if State Occurs: State of Probability of Econom State Stock A Stock B Stock C Occurring (%) (%) (%) Boom 0.08 15.6 13.2 12.9 Normal 0.87 11.2 9.6 8 Recessi 0.05 2.5 -5.6 on 1.2 9.2603 What is the expected return of the portfolio? Arrastre la respuest a aqui 9.4359 22.9800 What is the standard deviation of the portfolio? Arrastre la respuest a aqu 2.6598 2.6656 7.1056

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