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Financial Management question There are two assets and three states of the economy, answer questions 34 to 36. State of Economy Probability of State of
Financial Management question
There are two assets and three states of the economy, answer questions 34 to 36. State of Economy Probability of State of Economy 0.30 Recession Normal Boom Return of Stock A if State Occurs -0.10 0.20 0.30 Return of Stock B if State Occurs 0.08 0.15 0.20 0.20 34. Suppose you have $100,000 total. If you put $30,000 in Stock A and the remainder in Stock B, what are the portfolio returns in each state? 35. Suppose you have $100,000 total. If you put $30,000 in Stock A and the remainder in Stock B, what will be the expected return of your portfolio? 36. Suppose you have $100,000 total. If you put $30,000 in Stock A and the remainder in Stock B, what will be the standard deviation of your portfolioStep by Step Solution
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