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1. value: 10.00 points Problem 11-10 Returns and Standard Deviations [LO 1, 2] Consider the following information: Rate of Return If State Occurs State of
1. value: 10.00 points Problem 11-10 Returns and Standard Deviations [LO 1, 2] Consider the following information: Rate of Return If State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy 15 50 25 .10 Stock A 35 .12 .01 - 11 Stock B 45 .10 .02 - 25 Stock C 33 17 -05 -09 Requirement 1: Your portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return of the portfolio % Requirement 2: (a) What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places(e.g., 32.16161).) Variance of the portfolio (b) What is the standard deviation of this portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviation %
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