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Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Boom Stock 42

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Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Boom Stock 42 -.05 .22 -04 .15 -14 Bust 45 a. What is the expected return on an equally weighted portfolio of these three stocks and enter your answer as a percent (Do not round intermediate calculations rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 24 percent each in A and B and 52 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g. 161616.) a. Expected return b. Variance

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