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Consider the following Information: Portfolio of Probability Rate of Return if State Occurs State Economy (Rp) Stock A Stock B Stock C Boom 0.10 0.35

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Consider the following Information: Portfolio of Probability Rate of Return if State Occurs State Economy (Rp) Stock A Stock B Stock C Boom 0.10 0.35 0.40 0.27 Good 0.60 0.16 0.17 0.08 Poor 0.25 - 0.01 -0.03 -0.04 Bust 0.05 - 0.12 - 0.18 - 0.09 Your portfolio is invested 30 percent each in A and C, and 40 percent in B a. Calculate the following: 1. the expected return of the Portfolio 2. the Standard deviation of the portfolio

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