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Using the following 3 securities calculate: 1. Expected return 2. Variance 3. Standard deviation 4. Correlation...

Using the following 3 securities calculate:

1. Expected return

2. Variance

3. Standard deviation

4. Correlation between all possible pairs

5. Covariance between all possible pairs

Probability Stock A Stock B Stock C

.2 14% 29% 4%

.2 11% 21% 9%

.2 5.25% 25% 14%

.4 -3% 10% 20%

Using the following percentages, calculate the portfolio variance and expected return for each portfolio.

Portfolio Stock A Stock B Stock C

1 40% 60%

2 60% 40%

3 35% 30% 35%

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