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State of Economy Probability of State of Economy Rate of Return if state occurs Stock A Stock B Stock C Boom .15 .37 .47 .27

State of Economy Probability of State of Economy Rate of Return if state occurs

Stock A Stock B Stock C

Boom .15 .37 .47 .27

Good .45 .22 .18 .11

Poor .35 -.04 -.07 -.05

Bust .05 -.18 -.22 -.08

Your portfolio is invested 20% each in stock A and C, and 60% in stock B. Given the analysis above the expected return of your portfolio is _______%, with a portfolio standard deviation of _________%.

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