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Problem:

Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .17 .358 .458 .338 Good .43 .128 .108 .178 Poor .33 .018 .028? 062 Bust .07? 118? 258? 098

Required:

Part 1:

Question 1: Your portfolio is invested 29 percent each in A and C and 42 percent in B. What is the expected return of the portfolio?

Part 2:

Question 1: What is the variance of this portfolio?

Question 2: What is the standard deviation of this portfolio?

Note: Please provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174161

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