Given the following information, calculate the expected return and standard deviation for a portfolio that has 50 percent invested in Stock A, 20 percent in Stock B, and the balance in Stock C Returns State of Probability of Economy State of Economy Stock A Stock B Stock C Boom 80 15 18 25 Bust 20 16 0 16 Expected return Standard deviation

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Question: Given the following information, calculate the expected return and standard deviation for a portfolio that has 50 percent invested in Stock A, 20 percent in

Given the following information, calculate the expected return and standard deviation for a portfolio that has 50 percent invested in Stock A, 20 percent in Stock B, and the balance in Stock C.

			Returns
State of	Probability of
Economy	State of Economy		Stock A		Stock B		Stock C
Boom		.80	15	%	18	%	25	%
Bust		.20	16		0		16


Expected return	%
Standard deviation	%

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