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Given the following information, calculate the expected return and standard deviation for a portfolio that has 54 percent invested in Stock A, 30 percent in
Given the following information, calculate the expected return and standard deviation for a portfolio that has 54 percent invested in Stock A, 30 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Returns | ||||
State of Economy | Probability of State of Economy | Stock A | Stock B | Stock C |
Boom | 0.80 | 17% | 18% | 23% |
Bust | 0.20 | 9% | 0% | -9% |
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