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Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 0.25 0.15 Growth 30% 0.15 -0.05 Normal 20% 0.12 -0.06 Bust

Consider the following information on two stocks:

P(State) Stock A Stock B
Boom 20% 0.25 0.15
Growth 30% 0.15 -0.05
Normal 20% 0.12 -0.06
Bust 30% -0.05 0.10

1.) Suppose you invest $40,000 into stock A, and $60,000 into stock B. Calculate the weight of A in the portfolio. (Enter percentages as decimals and round to 4 decimals)

2.) Suppose you invest $40,000 into stock A, and $60,000 into stock B. Calculate the variance of the portfolio. (Enter percentages as decimals and round to 4 decimals)

3.) Suppose you invest $40,000 into stock A, and $60,000 into stock B. Calculate the standard deviation of the portfolio. (Enter percentages as decimals and round to 4 decimals)

4.) Suppose you invest $40,000 into stock A, and $60,000 into stock B. Calculate the expected return of the portfolio. (Enter percentages as decimals and round to 4 decimals)

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