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Rate of Return if State Occurs State of Probability of State of Economy Economy Stock B Stock C Stock A .34 .15 .44 .35 Boom
Rate of Return if State Occurs State of Probability of State of Economy Economy Stock B Stock C Stock A .34 .15 .44 .35 Boom Good Poor Bust .55 .18 15 .09 - - .02 12 .05 - .30 - .04 .07 a. Your portfolio is invested 30 percent each in A and C, and 40 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. 11.34 % b-1. b-2. Expected return Variance Standard deviation
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