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State Apple Gold p (r-m)^2 Google 7 Boom 10 4 Portfolio Return 28% 0% -12% 5 Normal Bust Price 5 2 5 0.33 0.33 0.33

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State Apple Gold p (r-m)^2 Google 7 Boom 10 4 Portfolio Return 28% 0% -12% 5 Normal Bust Price 5 2 5 0.33 0.33 0.33 5 6 5 4 5 E[R] 13% 7% 0% Sum Weight 0.4 0 0.6 1 A 1 E[R] std[R] U[R] Step 1) Fill in the yellow boxes to calculate the expected return of each stock and the return of the portfolio in each state. 2) Calculate the expected return, standard deviation and utility achieved if the risk aversion parameter is

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