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You are now making $250,000 annual salary and are looking to begin investing your money. You are looking to start investing $20,000 in the stock

You are now making $250,000 annual salary and are looking to begin investing your money. You are looking to start investing $20,000 in the stock markets.

After careful analysis you decide to invest $6,000 in Apple and $14,000 in Facebook stock. You further analyzed the state of the economy and put together the table below.

State of Economy

Probability

Apple return based on Economy

Facebook return based on Economy

Recession

10%

-20%

30%

Normal

60%

10%

20%

Boom

30%

70%

50%

Based on your analysis what is the expected return, and standard deviation of your portfolio?

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