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Consider the following information: Economic State Probability of Economic State Rate of Return if State Occurs Boom Bust 0.65 0.35 Stock A 0.06 0.14 Stock

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Consider the following information: Economic State Probability of Economic State Rate of Return if State Occurs Boom Bust 0.65 0.35 Stock A 0.06 0.14 Stock B 0.16 0.02 Stock C 0.33 -0.06 Required: 1. What is the expected return on an equally weighted portfolio of these three stocks? 2. What is the variance of a portfolio investment 20 percent in each A and B and 60 percent in C

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