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Suppose you have a 3-asset portfolio (portfolio P) that is invested 25% in Asset 1, 60% in Asset 2 and 15% in Asset 3. Use

Suppose you have a 3-asset portfolio (portfolio P) that is invested 25% in Asset 1, 60% in Asset 2 and 15% in Asset 3. Use the table below to calculate the expected return, expected standard deviation and expected coefficient of variation of your portfolio P.


stateProbabilityasset1 rate of returnasset2 rate of returnasset3 rate of return
Boom10%28%40%15%
good growth25%22%25%10%
poor growth45%-7%0%5%
recession20%2%-15%0%


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