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You decide to invest in a portfolio consisting of 26 percent Stock A, 35 percent Stock B, and the remainder in Stock C. Based on

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You decide to invest in a portfolio consisting of 26 percent Stock A, 35 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio? State of Probability of State Return if State Occurs Economy of Economy Stock A Stock B Stock Recession - 9.108 - 2.500 -11.508 Normal .645 8.408 10.468 15.900 Boom .251 21.358 24.713 29.418 . 104 Multiple Choice 00897 00854 01153 Multiple Choice 00897 00854 O 01153 00794 00965

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