Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock...

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Finance

Consider the following information:

Rate of Return if State Occurs
State of Economy Probability of
State of Economy Stock A Stock B Stock C
Boom 0.70 0.33 0.17 0.27
Bust 0.30 0.13 0.15 -0.05

Requirement 1:
What is the expected return on an equally weighted portfolio ofthese three stocks? (Do not round your intermediatecalculations.)
(Click to select)20.27%22.77%32.30%35.07%14.54%

Requirement 2:
What is the variance of a portfolio invested 20 percent each inA and B and 60 percent in C? (Do not round yourintermediate calculations.)
(Click to select)0.0193960.0116960.0196960.0151960.017196

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Rate of Return if State Occurs State of Economy Probability of Stock A Stock B Stock C State of Economy Boom 07 033 017 027 Bust 03 013 015 005 See Answer

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Consider the following information: Rate of Return if State OccursState of EconomyProbability ofState of EconomyStock AStock BStock CBoom0.700.330.170.27Bust0.300.130.15-0.05 Requirement 1:What is the expected return on an equally weighted portfolio ofthese three stocks? (Do not round your intermediatecalculations.)(Click to select)20.27%22.77%32.30%35.07%14.54% Requirement 2:What is the variance of a portfolio invested 20 percent each inA and B and 60 percent in C? (Do not round yourintermediate calculations.)(Click to select)0.0193960.0116960.0196960.0151960.017196

		Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B	Stock C
Boom	0.70	0.33	0.17	0.27
Bust	0.30	0.13	0.15	-0.05