Consider the following information: Rate of Return If State Occurs State of Probability of State of...
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Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Boom .56 Stock A .06 Stock B Stock C .14 .34 Bust .44 .15 .05 -.04 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 22 percent each in A and B and 56 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) a. Expected return b. Variance Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Boom .56 Stock A .06 Stock B Stock C .14 .34 Bust .44 .15 .05 -.04 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 22 percent each in A and B and 56 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) a. Expected return b. Variance
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