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Question
You own a portfolio comprised of 4 stocks and the economy has 3 possible states. Assume you invest your portfolio in a manner that results in an expected rate of return of 7.5 percent, regardless of the economic state. Given this, what must be value of the portfolio's variance be?A. negative, but not -1
B. -1.0
C. 0.0
D. 1.0
E. positive, but not +1
Answer
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Related questions
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