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Returns and Variances [LO1] Consider the following information Rate of Return If State Occurs State of Economy Boom Bust Probability of State of EconomyStock AStock

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Returns and Variances [LO1] Consider the following information Rate of Return If State Occurs State of Economy Boom Bust Probability of State of EconomyStock AStock B Stock C .75 .25 .06 .15 -.04 .25 .08 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C

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