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Consider the following information: State of Economy Boom Good Poor Bust a. Probability of State of Economy .15 .55 .25 .05 a. Expected return b-1.
Consider the following information: State of Economy Boom Good Poor Bust a. Probability of State of Economy .15 .55 .25 .05 a. Expected return b-1. Variance b-2. Standard deviation Rate of Return if State Occurs Stock A Stock B Stock C .33 .43 .23 .18 .14 .12 -.08 -.18 -.05 -.13 Your portfolio is invested 26 percent each in A and C, and 48 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) do % -.06 -.10 %
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