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Consider the following information: State of Economy Boom Good Poor Bust Rate of Return if State Occurs Probability of State of Economy Stock A Stock
Consider the following information: State of Economy Boom Good Poor Bust Rate of Return if State Occurs Probability of State of Economy Stock A Stock B Stock C .20 .38 .48 .28 .50 .14 .19 .12 .20 -.05 -.08 -.06 .10 -.19 -.23 -.09 Your portfolio is invested 22 percent each in A and C, and 56 percent in B. What is the expected return of the portfolio? What is the variance of this portfolio? 1 What is the standard deviation
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