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    Portfolio's expected return and standard deviation

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    Andy Castaneda owns 3 stocks and has estimated the following joint probability distribution of returns:

    Outcome Stock A Stock B Stock C Probability
    1 -10 10 0 0.30
    2 0 10 10 0.20
    3 10 5 15 0.30
    4 20 -10 5 0.20

    Calculate the portfolio's expected return and standard deviation if Andy invests 20% in stock A, 50% in stock B, and 30% in stock C. Assume that each security's return is completely uncorrelated with the returns of the other securities.

    (see chart in attached file)

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    https://brainmass.com/business/beta-and-required-return-of-a-project/87730

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    Calculates portfolio's expected return and standard deviation.

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