You decide to invest in a portfolio consisting of 26 percent Stock A, 43 percent...
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Finance
You decide to invest in a portfolio consisting of 26 percent Stock A, 43 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio?
State of Economy
Probability of State
Return if State Occurs
of Economy
Stock A
Stock B
Stock C
Recession
.127
11.40%
4.80%
13.80%
Normal
.691
10.70%
10.92%
18.20%
Boom
.182
21.81%
25.63%
30.33%
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