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Given the following information, calculate the expected return and standard deviation for a portfolio that has...

Given the following information, calculate the expected return and standard deviation for a portfolio that has 50 percent invested in Stock A, 20 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Returns
State of
Economy		 Probability of
State of Economy		 Stock A Stock B Stock C
Boom .80 15 % 18 % 25 %
Bust .20 16 0 −16

Expected return:__________%

Standard deviation:_________%

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Expert Solution

jeff jeffy answered 2 years ago
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