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Business, 16.08.2021 18:40 kcarstensen59070

A portfolio consists of 40 percent of Stock S and 60 percent of Stock T. Stock S will return 13 percent if the economy booms and 8 percent if it is normal. Stock T will return 6 percent in a boom and 10 percent in a normal economy. The probability of a boom is 50 percent. What is the portfolio variance?

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A portfolio consists of 40 percent of Stock S and 60 percent of Stock T. Stock S will return 13 perc...
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