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Consider the following information: State of Economy Boom Good Poor Bust Probability of State of Economy .10 .50 .35 .05 Rate of Return if State

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Consider the following information: State of Economy Boom Good Poor Bust Probability of State of Economy .10 .50 .35 .05 Rate of Return if State Occurs Stock A Stock B .30 .40 15 .11 What is the variance of this portfolio? -.02 -.10 -.05 -.15 Stock C .20 .09 -.03 -.07 Your portfolio is invested 32 percent each in A and C, and 36 percent in B. What is the expected return of the portfolio? What is the standard deviation

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