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You have a portfolio which is comprised of 40 percent of stock A and 60 percent...

You have a portfolio which is comprised of 40 percent of stock A and 60 percent of stock B. What is the variance of the portfolio?

State of the Economy Probability E(R)A E(R)B
40 % 60 %
Normal 0.7 12 % 14 %
Recession 0.3 -7 % -10 %
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