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Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State Boom 20% Good Poor

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Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State Boom 20% Good Poor 25% Bust 10% 45% If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent? Answer to two decimals, carry intermediate calcs. to at least four decimals. You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 2.08 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? Answer to two decimals. Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State Boom 20% Good 45% Poor 25% Bust 10% A 0.33 0.16 0.01 -0.09 B 0.22 0.11 0.01 -0.02 0.18 0.07 0.03 -0.03

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