Question: Q5) Solve the problem using the information in the following table. What is the expected return of a portfolio composed of three stocks Equally Weighted?
Q5) Solve the problem using the information in the following table. What is the expected return of a portfolio composed of three stocks Equally Weighted? [5 points] Invest 40% in stock A. Invest 40% in stock B. Invest 20% in stock C. What is the variance and standard deviation of the portfolio invested in this way? [5 points]

State of Economy Boom Bust Probability of State of Economy 0,80 0,20 Rate of Return If State Occurs Stock B Stock C 0.15 0,25 -0.05 -0.20 Stock A 0,20 0.10
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