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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 .20 .36 .46 .26 Good .55 .20 .17 .11 Poor .20 –.04 –.07 –.06 Bust .05 –.14 –.32 –.09 Requirement 1: Your portfolio is invested 26 percent each in A and C, and 48 percent in B. What is the expected return of the portfolio? (Do not round your intermediate calculations.) Requirement 2: (a) What is the variance of this portfolio? (Do not round your intermediate calculations.) (b) What is the standard deviation? (Do not round your intermediate calculations.)

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