Question: 3. Based on the following information, calculate the expected return and standard deviation for the three stocks: State of Economy Boom Bust Probability of State

3. Based on the following information, calculate the expected return and standard deviation for the three stocks: State of Economy Boom Bust Probability of State of Economy .65 .35 Rate of Return if State Occurs Stock B Stock C Stock A .07 .13 .15 .03 .33 -.06 a. Calculate the expected return for each stock. b. Calculate the expected return of a portfolio investing 20% in stock A, 20% in stock B and 60% in stock C.

3. Based on the following information, calculate the expected return and standard deviation for the three stocks: a. Caiculate the expected return for each stock. b. Calculate the expected return of a portfolio investing 20% in stock A, 20% in stock B and 60% in stock C

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