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Consider the following information: Rate of Return If State Occurs State of Probability of Stock C Economy State of Economy Stock A Stock B Boom
Consider the following information: Rate of Return If State Occurs State of Probability of Stock C Economy State of Economy Stock A Stock B Boom Good Poor Bust .25 .15 .30 .30 .03 .12 .05 -.05 39 .22 -04 -.18 30 .15 -07 -09 a. Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Expected return % b-1.What is the variance of this portfolio? (Round your answer to 5 decimal places.) Variance of this portfolio b- The standard deviation? (Round your answer to 2 decimal places. Omit the "%" sign 2. in your response.) Standard deviation ae
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