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Consider the following information: Rate of Return if State Occurs Stock B .50 Probability State State of Economy of Economy Boom .15 Good .60 Poor

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Consider the following information: Rate of Return if State Occurs Stock B .50 Probability State State of Economy of Economy Boom .15 Good .60 Poor .20 Bust .05 Stock A .40 .16 -.02 -.18 .10 Stock C .30 .09 -.03 -.11 -.05 -.25 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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % a. Expected return b-1. Variance b-2. Standard deviation %

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