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State of Econ. Prob. Return (A) Return (B) Return ( C) Boom .10 .35 .40 .27 Good .60 .16 .17 .08 Poor .25 -.01 -.03

State of Econ. Prob. Return (A) Return (B) Return ( C)

Boom .10 .35 .40 .27

Good .60 .16 .17 .08

Poor .25 -.01 -.03 -.04

Bust .05 -.12 -.18 -.09

Calculate the portfolio expected return and standard deviation. Assume that your portfolio is invested 30% in Asset A and C and 40% in Asset B

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