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please show work and answers in clear and easy way to understand B. You now have a third asset to consider in your original portfolio
please show work and answers in clear and easy way to understand
B. You now have a third asset to consider in your original portfolio Advanten has returns of 5, 2. O and 2% (05.02,0, 02) expected under the four states from Boom, Normal, Recession, Depression respectively. Your new investment values are $18000 in Pointer, $14000 in $8000 in Advanten. a Calculate the expected return on this new portfolio b. Calculate the variance and standard deviation of this new portfolio c. How do the results of this portfolio compare to the results of the prior two asset portfolio? Explain. B. You now have a third asset to consider in your original portfolio Advanten has returns of 5, 2. O and 2% (05.02,0, 02) expected under the four states from Boom, Normal, Recession, Depression respectively. Your new investment values are $18000 in Pointer, $14000 in $8000 in Advanten. a Calculate the expected return on this new portfolio b. Calculate the variance and standard deviation of this new portfolio c. How do the results of this portfolio compare to the results of the prior two asset portfolio? Explain Step by Step Solution
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