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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 Stock A Stock B Stock C Economy State Occurring (%) (%) (%) Boom 0.08 15.6 13.2 12.9 Normal 0.87 11.2 9.6 8 Recessio n 0.05 2.5 1.2 -5.6 2. Teri What is the expected return of the portfolio? 9.4359 9.4359 2.6598 What is the standard deviation of the portfolio? Arrastre la respuesta aqu 2.6656 22.9800 710

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