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Consider the following information on returns and probabilities: Invest 2/3 of your money in Asset A and 1/3 in Asset B. State Probability Boom .75
Consider the following information on returns and probabilities: Invest 2/3 of your money in Asset A and 1/3 in Asset B. State Probability Boom .75 1296 296 Bust .25 696 1896 What is the expected return for the portfolio? 96 a. 1.7 b. 2.9 C. 3.9 d. 4.6 e. 5.5 f.6.9 3.7.5 h. 9.0 1.8.2 j. 10.5 96 Following above, what is the standard deviation of the return on the portfolio? 96 a. 0.58 b. 2.6 C. 3.9 d. 4.6 e. 5.9 f.6.9 3.7.6 h.8.5 1.9.6 j. 10.17 96
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