What is the variance of a portfolio invested 20 percent


State of Economy Probability of State of Economy Stock A Stock B Stock c
Boom .58 .07 .15 .33
Bust .42 .16 .06 -.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?

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Financial Management: What is the variance of a portfolio invested 20 percent
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