Question: What is the expected return , variance , and standard deviation of the returns on a portfolio that is invested 60 percent in stock S
What is the expected return , variance , and standard deviation of the returns on a portfolio that is invested 60 percent in stock S and 40 percent in stock T?
Return in State State Probability of State Stock S Stock T
Boom 40% 23% 17%
Normal 60% 7% 4%
For expected return, indicate your answer as a two-decimal percentage. For example, 4.56%
For variance, indicate your answer as a four-decimal number. For example, 0.0045
For standard deviation, indicate your answer a two-decimal percentage. For example, 12.67%
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