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Question 14 5 pts Consider the following information: Rate of Return if the State Occurs State of Economy Probability of State of Economy Omega Ltd

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Question 14 5 pts Consider the following information: Rate of Return if the State Occurs State of Economy Probability of State of Economy Omega Ltd Delta Ltd Boom 0.7 8% 2% Bust 0.3 4% 15% (a) Calculate the expected return on a portfolio consisting of 65 percent investment in Omega and 35 percent in Delta. (2 marks) (b) Calculate the standard deviation of the portfolio

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