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    Stocks and Portfolio

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    Returns
    State of the economy Probability A Comp. B Comp
    Good 70% 5% 40%
    Normal 20% 12% 25%
    Poor 10% 20% 7%

    What are the expected returns for A and B Comp? What is the standard deviation for each stock? What is the expected return for the portfolio if you invest 40% in A and 60% in B? What's the portfolio standard deviation with those weights?

    © BrainMass Inc. brainmass.com October 10, 2019, 2:46 am ad1c9bdddf
    https://brainmass.com/economics/finance/stocks-portfolio-393078

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    Returns
    State of the economy Probability A Comp B Comp
    Good 70% 5% 40%
    Normal 20% 12% 25%
    Poor 10% 20% 7%

    What are the expected returns for A and B Comp?
    Returns
    State of the economy Probability A Comp B Comp
    Good 70% (A) 5% (B) 40%
    Normal 20% (C) 12% (D) 25%
    Poor 10% (E) 20% ...

    Solution Summary

    The expert examines the stocks and portfolio returns for the state of the economy.

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