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need help! LO1, LO2 25. Portfolio Returns and Deviations Consider the following information on a portfolio of three stocks: State of Economy Boom Normal Bust

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LO1, LO2 25. Portfolio Returns and Deviations Consider the following information on a portfolio of three stocks: State of Economy Boom Normal Bust Probability of State of Economy .25 .60 .15 Stock A Rate of Stock B Rate of Return Return .04 .09 .15 43 .33 .13 -.14 Stock C Rate of Return tro .55 .19 -.28 a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio's expected return? The variance? The standard deviation? b. If the expected T-bill rate is 3.4 percent, what is the expected risk premium on the portfolio? nggots is equal to the ratio of their betas.
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1, L.O2 25. Portfolio Refurns and Deviations Consider the following information on a portfolio of three stocks: a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio's expected returm?" The variance? The standard deviation? b. If the expected Tbill rate is 3,4 percent, what is the expected risk premium on the portiolio

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