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The current value of a stock portfolio is $10,000. Suppose a financial analyst summarized the following information about one particular investment in the following table.

The current value of a stock portfolio is $10,000. Suppose a financial analyst summarized the following information about one particular investment in the following table. Fill in the blanks and calculate the portfolio expected holding-period return, the standard deviation of returns, and the 5% VAR.

Scenarios

Probability

End-of-period

Portfolio Value

Return
Good .2 28,000
Normal .5 11,000
Bad .3 7,000

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