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

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 0.72 0.06 0.11 0.17
Bust 0.28 0.19 -0.04 0.23

  

a.

What is the variance of a portfolio invested 30 percent each in A and B, and 40 percent in C?
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