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Consider the following information: Rate of Return if State Occurs Probability of State State of Stock C Stock A Stock B of Economy 71 Economy

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Consider the following information: Rate of Return if State Occurs Probability of State State of Stock C Stock A Stock B of Economy 71 Economy Boom .03 29 .09 09 .24 18 .29 Bust a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 26 percent each in A and B and 48 percent in C? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) a. Expected return b. Variance of portfolio

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