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Given the following information, what is the expected return and standard deviation of a portfolio which is invested 30 percent in both stocks A and
Given the following information, what is the expected return and standard deviation of a portfolio which is invested 30 percent in both stocks A and C, and 40 percent in stock B?
State of Probability of Rate of Return if State Occurs
Economy State of Economy Stock A Stock B Stock C
Boom .10 .28 .12 .18
Normal .75 .03 .09 .07
Recession .15 -.40 .05 -.22
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