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Consider the following information: 4 State of Economy Boom Bust Probability of State of Economy 0.74 0.26 Rate of Return if State Occurs Stock A

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Consider the following information: 4 State of Economy Boom Bust Probability of State of Economy 0.74 0.26 Rate of Return if State Occurs Stock A Stock B Stock C 0.25 0.19 0.09 0.11 0.15 0.15 00:22:34 Print a. What is the expected return on an equally weighted portfolio of these three stocks? 19.13% b. What is the variance of a portfolio invested 30 percent each in A and B and 40 percent in C

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