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Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .15 .31 .41 .21
Rate of Return If State Occurs  
State of  Probability of   
Economy  State of Economy  Stock A  Stock B  Stock C  
Boom  .15  .31  .41  .21  
Good  .60  .16  .12  .10  
Poor  .20  .03  .06  .04  
Bust  .05  .11  .16  .08  

a.  Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculaitons. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 
Expected return  % 
b1  What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) 
Variance 
b2  What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 
Standard deviation  % 
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