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State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom .20 .32 .42

  

State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom .20 .32 .42 .22 Good Poor Bust .50 .17 .13 .11 .25 -.04 -.07 -.05 .05 -.12 -.17 -.09 Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? Expected return What is the variance of this portfolio? Variance What is the standard deviation? Standard deviation

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