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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 Stock C Boom

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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 Stock C Boom .25 .19 .35 .28 Good 30 .14 .13 . 14 Poor .10 .00 -.10 -.05 Bust .35 .28 -.13 -.20 a. Your portfolio is invested 35 percent each in Stocks A and C and 30 percent in Stock B. What is the expedted return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return % b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.) Variance b-2. What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) Standard deviation %

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