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Q3. Consider the following information: Return on A % Return on B % State of the Economy Boom Growth Normal Recession Probability of State of
Q3. Consider the following information: Return on A % Return on B % State of the Economy Boom Growth Normal Recession Probability of State of the Economy 0.40 0.20 0.20 0.20 10 4 24 16 4 0 16 20 a) What is the expected return for A? For B? b) What is the standard deviation for A? For B? c) What is the expected return on a portfolio of A and B that is 30% invested in A and the remainder in B
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