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NAME: There are two assets and two states of the economy. State of Economy Probability of State Rate of Return of Stock A Rate of

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NAME: There are two assets and two states of the economy. State of Economy Probability of State Rate of Return of Stock A Rate of Return of Stock B 15% Recession Boom 0.60 0.40 -10% 30 -5 Suppose you have $30,000 total. If you put $9,000 in Stock A and the remainder in Stock B, what will be the expected return and standard deviation on your portfolio? (5 points)

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