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ces Consider the following information: State of Economy Boom Good Poor Bust Probability of State- of Economy .20 .50 .25 .05 a. Expected return b-1.
ces Consider the following information: State of Economy Boom Good Poor Bust Probability of State- of Economy .20 .50 .25 .05 a. Expected return b-1. Variance b-2. Standard deviation Rate of Return if State Occurs Stock A Stock B .31 .41 18 .12 -.04 -.15 % -.07 -.27 a. Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Stock C .32 .11 -.05 -.08
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