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Consider the following information: State of Probability of State Economy of Economy Boom 0.7 Bust 0.3 Rate of Return if State Occurs Stock A Stock

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Consider the following information: State of Probability of State Economy of Economy Boom 0.7 Bust 0.3 Rate of Return if State Occurs Stock A Stock B Stock C 0.07 0.02 0.25 0.11 0.19 -0.05 a) What is the expected return on an equally weighted portfolio of these three stocks? b) What is the variance of a portfolio invested in 25 percent each in A and B and 50 percent in C

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