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What is the variance of the returns on a portfolio comprised of $5,400 of stock G and $6,600 of stock H? State of Economy Probability
What is the variance of the returns on a portfolio comprised of $5,400 of stock G and $6,600 of stock H?
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs | |
| Stock G | Stock H | ||
| Boom | 36% | 21% | 13% |
| Normal | 64 | 13 | 5 |
Please show work if you can!!!
a. 0.001554
b. 0.000848
c. 0.000709
d. 0.001568
e. 0.001475
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Short Term Financial Management
Authors: Ned C Hill
1st Edition
0023548207, 978-0023548208
