You have $100,000 invested in a portfolio comprised of two assets: 65% in asset A and 35%
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Question:
You have $100,000 invested in a portfolio comprised of two assets: 65% in asset A and 35% in asset B. Given the following information, respond to the required below:
| State | Probability | Return Asset A | Return Asset B |
| Boom | .25 | 35% | 30% |
| Bust | .25 | 5% | -5% |
| Normal | .50 | 22% | 14% |
REQUIRED 1: What is the expected return for the portfolio?
REQUIRED 2: What is the variance for the portfolio?
REQUIRED 3: What is the standard deviation for the portfolio?
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