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Consider the information about these three stocks: Rate of Return if State Occurs State of
Probability of state stock stock Stock Economy of economy A B c Boom 0.25 0.13 0.29 0.6 Normal
0.6 0.08 0.11 0.13 Bust 0.15 0.02 -0.18 -0.45 If your portfolio is invested 40% each in A and B and
20% in C, what is the portfolios a. Expected return ? b. Standard deviation ?

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Consider the information about these three stocks Rate of R.pdf

  • 1. Consider the information about these three stocks: Rate of Return if State Occurs State of Probability of state stock stock Stock Economy of economy A B c Boom 0.25 0.13 0.29 0.6 Normal 0.6 0.08 0.11 0.13 Bust 0.15 0.02 -0.18 -0.45 If your portfolio is invested 40% each in A and B and 20% in C, what is the portfolios a. Expected return ? b. Standard deviation ?