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S Consider the following information: State of Probability of Economy State of Economy Boom Good Poor Bust .22 .38 .28 .12 Stock A .369 .139

S Consider the following information: State of Probability of Economy State of Economy Boom Good Poor Bust .22 .38 .28 .12 Stock A .369 .139 .029 -.129 a. Expected return b. Variance c. Standard deviation a. Your portfolio is invested 28 percent each in A and C and 44 percent in B. What is the expected return of the portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Rate of Return if State Occurs Stock B. .469 .119 .039 -.269 b. What is the variance of this portfolio? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161. c. What is the standard deviation of this portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % Stock C .349 .189 -.094 -.109 %

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