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Consider the following information: Rate of Return if State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy 0.15 0.45 0.30

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Consider the following information: Rate of Return if State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy 0.15 0.45 0.30 0.10 Stock A 0.32 0.19 0.05 0.16 Stock B 0.42 0.13 - 0.08 0.28 Stock C 0.33 0.12 0.06 0.09 a. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. (0.9., 32.16)) Expected return % b-1 What is the variance of this portfolio? (Do not round Intermediate calculations and round your answer to 5 decimal places. (e.g. 32.16161)) Variance b-2 What is the standard deviation? (Do not round intermediate calculations and round your final answer to 2 decimal places (0.g. 32.16)) Standard deviation %

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