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only 4 and 5 Rate of Return if State Occurs State of Economy Boom Bust Asset Weights Probability of State of Economy 60% 40% Stock
only 4 and 5
Rate of Return if State Occurs State of Economy Boom Bust Asset Weights Probability of State of Economy 60% 40% Stock A 0.12 -0.05 50% Stock B Stock C 0.30 0.20 -0.20 -0.10 25% 25% 3. What is the expected return of Stock C? A. 8% B. 12% C. 20% D. 2% E. Cannot be determined from the information given. 4. What is the expected return of this portfolio? A. 3.65% B. 4.91% C. 6.45% D. 7.10% E. 8.25% 5. What is the standard deviation of the portfolio? A. 13.96% B. 8.33% C. 24.49% D2 14.70% E. Cannot be determined from the information given Step by Step Solution
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