What is the expected return on an equally weighted portfolio

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Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.65 0.07 0.15 0.33 Bust 0.35 0.13 0.03 -0.06 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B, and 60 percent in C?

Reference no: EM13276250

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