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Question 5 (4 points) Use the following information to answer the two questions below. State of the economy Boom Bust Prob. of the Rate of
Question 5 (4 points) Use the following information to answer the two questions below. State of the economy Boom Bust Prob. of the Rate of return if state occurs state of economy Stock AStock B 0.70 0.20 0.02 0.30 -0.10 0.02 You MUST use 4 digits in every calculation you do in order for your answer to be the same as the one in the system. Enter answer using 4 decimals. What is the expected return of a portfolio with equal investments in each asset? abs What is the variance of the portfolio with equal investments in each asset? Save
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