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PLEASE SHOW ALL OF YOUR WORK! Thnx :) You have to show your work to earn credit! Chapter 8 1. Suppose you form a portfolio

PLEASE SHOW ALL OF YOUR WORK! Thnx :)image text in transcribed

You have to show your work to earn credit! Chapter 8 1. Suppose you form a portfolio that consists of 60% investment ABC and 40% investment RST. Economy States Probability PABC PRST 7 0.1 0.6 0.3 22% 12% 2% -2% 12% 30% a) Compute the return of the portfolio in each state: State 1 Portfolio Return: State 2 Portfolio Return: State 3 Portfolio Return: b) Compute the expected return of the portfolio c) Compute the standard deviation of the portfolio

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