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Given the following information, what is the variance of a portfolio that is invested 25 percent in both stocks A and C, and 50 percent
Given the following information, what is the variance of a portfolio that is invested 25 percent in both stocks A and C, and 50 percent in stock B?
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs | |||
| Stock A | Stock B | Stock C | |||
| Boom | 0.45 | 0.19 | 0.09 | 0.06 | |
| Natural | 0.55 | 0.11 | 0.05 | 0.26 | |
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Public Finance
Authors: Steven G. Medema, Carl Sumner Shoup
1st Edition
0202307859, 978-0202307855
