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Question 2 -3 points You have formed a portfolio that is invested 40 percent in both Stocks A and B, and 20 percent in Stock
Question 2 -3 points You have formed a portfolio that is invested 40 percent in both Stocks A and B, and 20 percent in Stock C. Rate of Return if State Occurs: State of Probability of Stock A Stock B Stock C Economy State Occurring (%) (%) (%) Boom .08 15.8 9.4 21.2 Normal .92 10.6 6.8 10.4 A. What is the expected return on this portfolio? Show details of your calculations in the space provided below: B. What is the variance and standard deviation of this portfolio? Show details of your calculations in the space provided below
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