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Consider the following information on three stocks. A portfolio is invested 45 percent in Stock A, 45 percent in Stock B, and 10 percent in

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Consider the following information on three stocks. A portfolio is invested 45 percent in Stock A, 45 percent in Stock B, and 10 percent in Stock C. Calculate the expected return, variance and standard deviation on the portfolio. Please show your work. State of Probability of Rate of Return Economy State of Economy if State Occurs Stock A Stock B Stock C Boom .75 .27 .15 .11 Bust .25 -19 -.04 .05

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