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Please show all work and formulas Please use the following information to answer this question. State     Probability       A                     B                      C Boom   .3                     -10%                5%                   0% Normal            .4                     5                      3                      2                      Bust     .3                     10                    -5                     2 Find the expected...

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Finance

Please show all work and formulas

Please use the following information to answer thisquestion.

State    Probability      A                    B                     C

Boom  .3                    -10%               5%                  0%

Normal           .4                    5                     3                     2                     

Bust    .3                    10                  -5                    2

Find the expected return and variance of the portfolio if aninvestor spent $5000 on A, $8000 on B and $7000 on C.

Answer & Explanation Solved by verified expert
3.9 Ratings (451 Votes)
Investment in Stock A 5000 Investment in Stock B 8000 Investment in Stock C 7000 Total Investment Investment in Stock A Investment in Stock B Investment in Stock C Total Investment    See Answer
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