What is the portfolio expected return

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Reference no: EM131064834

Consider the following information about three stocks: State of Probability of Rate of Return if State Occurs Economy State of Economy Stock A Stock B Stock C Boom 0.3 0.2 0.25 0.60 Normal 0.45 0.15 0.11 0.05 Bust 0.25 0.01 -0.15 -0.50 a. What are the expected returns and standard deviations of Stocks A, B and C? b. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? The standard deviation?

Reference no: EM131064834

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