The table below shows the expected rates of return for three stocks and their weights in...
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The table below shows the expected rates of return for three stocks and their weights in some portfolio: Stock A Stock B Stock C Portfolio weights 0.3 0.2 0.5 State Probability Expected returns Recession 0.1 0.03 0.02 -0.03 Normal 0.5 0.06 0.06 0.04 Boom 0.4 0.11 0.08 0.12 Part 1 What is the expected portfolio return? Attempt 1/10 for 10 pts. 3+ decimals Part 2 What is the standard deviation of the portfolio returns? 4+ decimals Attempt 1/10 for 10 pts. The table below shows the expected rates of return for three stocks and their weights in some portfolio: Stock A Stock B Stock C Portfolio weights 0.3 0.2 0.5 State Probability Expected returns Recession 0.1 0.03 0.02 -0.03 Normal 0.5 0.06 0.06 0.04 Boom 0.4 0.11 0.08 0.12 Part 1 What is the expected portfolio return? Attempt 1/10 for 10 pts. 3+ decimals Part 2 What is the standard deviation of the portfolio returns? 4+ decimals Attempt 1/10 for 10 pts.
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