Consider the following information: Rate of Return if State Occurs State of Economy Boom Probability of...
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Consider the following information: Rate of Return if State Occurs State of Economy Boom Probability of State of Economy .56 Stock A .06 Stock B .14 Stock C .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 Economy Boom Probability of State of Economy .56 Stock A .06 Stock B .14 Stock C .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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