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You decide to invest in a portfolio consisting of 32 percent Stock A, 43 percent Stock B, and the remainder in Stock C. Based on

You decide to invest in a portfolio consisting of 32 percent Stock A, 43 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock A Stock B Stock C Recession .110 9.70% 3.10% 12.10% Normal .657 9.00% 10.58% 16.50% Boom .233 21.47% 24.95% 29.65%

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