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I need help with this question: (b) What is the variance of a portfolio invested 20 percent each in A and B and 60 percent
I need help with this question:
(b) What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?
The table is like:
Probability of State
State of Economy of Economy Stock A Stock B Stock C
Boom .75 .07 .01 .27
Bust .25 .12 .19 -.05
Please provide a thorough explanation
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