Question: Please also respond using Excel. Returns and Standard Deviations. Consider the following information: State of Economy Probability of State of Economy Rate of Return If

Please also respond using Excel. Returns and Standard Deviations. Consider the following information:

State of Economy Probability of State of Economy Rate of Return If State Occurs
Stock A Stock B Stock C
Boom .60 .15 .02 .34
Bust .40 .03 .16 .08

What is the expected return on an equally weighted portfolio of these three stocks?

What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?

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