Question
Given the following information, what is the expected rate of return and the standard deviation of...
Given the following information, what is the expected rate of return and the standard deviation of a portfolio which is invested 30 percent in stock A, 20 percent in stock B, and 50 percent in stock C?
State of Probability of Rate of Return if State Occurs
Economy State of Economy Stock A Stock B Stock C
Boom .10 .22 .08 .18
..........................................Normal .90 .08 .14 .07
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