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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom
| Consider the following information: |
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs | ||
|---|---|---|---|---|
| Stock A | Stock B | Stock C | ||
| Boom | 0.74 | 0.05 | 0.09 | 0.29 |
| Bust | 0.26 | 0.15 | 0.15 | -0.01 |
What is the variance of a portfolio invested 20 percent in each A and B and 60 percent in C?
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Chains Of Finance How Investment Management Is Shaped
Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova
1st Edition
0198802943, 978-0198802945
