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Expected Return Expected Return Expected Return Probability A B C Best state 0.25 40% 25% 15% Good state 0.25 30% 20% 12% Normal state 0.25

Expected Return Expected Return Expected Return
Probability A B C
Best state 0.25 40% 25% 15%
Good state 0.25 30% 20% 12%
Normal state 0.25 20% 15% 9%
Poor state 0.25 10% 10% 6%
beta - 1.8 1.1 0.7

Complete the following table.

A B C
Expected average return (e.g., 10.00%) % % %
Standard deviation (e.g., 10.00%) % % %

If a portfolio consists of A, B, and C is structured as follows, complete the table.

A B C
Portfolio weight 0.20 0.30 0.50
Portfolio
Expected average return (e.g., 10.00%) %

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