Question: ANOTHER EXAMPLE Consider the following information on returns and probabilities: StateProbability X7Portfolio Boom Normal Recession .25 .60 .15 15% 10% 5% 10% 9% 10% 13%

ANOTHER EXAMPLE Consider the following information on returns and probabilities: StateProbability X7Portfolio Boom Normal Recession .25 .60 .15 15% 10% 5% 10% 9% 10% 13% 9.6% 7% What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Z

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