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Requirement 1: Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the

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Requirement 1:

Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? (Do not round your intermediate calculations.)

A.)16.13%

B.)19.33%

C.)26.63%

D.)9.23%

E.)12.63%

Requirement 2:
(a) What is the variance of this portfolio? (Do not round your intermediate calculations.)

A.) .6203

B.) 2.3203

C.) -.7797

D.) .0203

E.) 1.2203

(b) What is the standard deviation? (Do not round your intermediate calculations.)

A.)16.45%

B.)11.95%

C.)18.65%

D.)14.25%

E.)10.95%

Consider the following information Rate of Return if State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy 15 60 .20 05 Stock A Stock B 45 Stock C .25 10 .05 .08 35 19 .03 -.13 06 -.31

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