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Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.66 0.34 Stock A 0.09

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Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.66 0.34 Stock A 0.09 0.13 Stock B Stock 0.31 0.15 0.11 0.13 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 10 percent each in A and B and 80 percent in C?

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