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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...

Consider the following information:

Rate of Return if State Occurs
State of Economy Probability of State of Economy Stock A Stock B Stock C
Boom 0.35 0.18 0.29 0.31
Good 0.15 0.17 0.10 0.11
Poor 0.40 0.03 –0.07 –0.08
Bust 0.10 –0.23 –0.22 –0.13

a. Your portfolio is invested 35 percent each in A and C and 30 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.)

b-2. What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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