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Consider the following information: State of Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Stock C Boom

Consider the following information: State of Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Stock C Boom .69 .12 .06 .27 Bust .31 .16 .22 .07 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 24 percent each in A and B and 52 percent in C?

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