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Based on the following information, please answer the question. State of Economy Probability Stock ABCs return Stock XYZs return Boom 20% 35% 0% Recession 80%

Based on the following information, please answer the question.

State of Economy

Probability

Stock ABCs return

Stock XYZs return

Boom

20%

35%

0%

Recession

80%

10%

10%

If you form a portfolio by investing 70% of your money in Stock ABC and 30% money in stock XYZ, what are the expected return and standard deviation of your portfolio?

Group of answer choices

E(RP)=20.2% ; P=9.32%.

E(RP)=12.9% ; P=9.83%.

E(RP)=12.9% ; P=5.80%.

E(RP)=15.5% ; P=7.76%.

E(RP)=20.2% ; P=6.64%.

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