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Rate of Return If State Occurs State of Probability of Economy Economy Boom Good Poor Bust State of Stock A 25 50 20 05 37
Rate of Return If State Occurs State of Probability of Economy Economy Boom Good Poor Bust State of Stock A 25 50 20 05 37 21 05 15 Stock B 47 18 08 Stock 27 05 10 a. Your portfolio is invested 25 percent each in A and C, and 50 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.) round your answer to 5 decimal places, e.g., .16161.) 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 b-2. What is the standard deviation? (Do not round intermediate calculations and enter a. Expected return b-1. Variance b-2. Standard deviation
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