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PLEASE SHOW WORK AND FORMULAS********** Consider the following information: Rate of Return if State Occurs State of Economy Boom Good Poor Bust Probability of State

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PLEASE SHOW WORK AND FORMULAS**********

Consider the following information: Rate of Return if State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy .15 .55 .25 .05 Stock A 30 .17 .03 .10 Stock B 40 .11 06 - 26 Stock C 31 .10 .04 .07 a. Your portfolio is invested 26 percent each in A and C, and 48 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. % Expected return b-1. Variance b-2. Standard deviation %

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