Question: Given the following information, what is the variance of the returns on a portfolio that is invested 40 percent in both Stocks A and B,

Given the following information, what is the variance of the returns on a portfolio that is invested 40 percent in both Stocks A and B, and 20 percent in Stock C?

(probability of state occurring, stock A, stock B, stock C)

Boom: .08, 15.8, 9.4, 21.2

Normal: .92, 10.6, 6.8, 10.4

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Question: Given the following information, what is the variance of the returns on a portfolio that is invested 40 percent in both Stocks A and B,

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