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Consider the following information: State of Probability of Economy State of Economy Boom Good Poor Bust .17 .43 .33 .07 a. Expected return b. Variance
Consider the following information: State of Probability of Economy State of Economy Boom Good Poor Bust .17 .43 .33 .07 a. Expected return b. Variance c. Standard deviation Stock A % 358 .128 018 -.118 % Rate of Return if State Occurs Stock B .458 .108 .028 -.258 a. Your portfolio is invested 29 percent each in A and C and 42 percent in B. What is the expected return of the portfolio? Note: 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 this portfolio? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 1616 c. What is the standard deviation of this portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Stock C .338 .178 -.062 -.098
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