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10. Returns and Standard Deviations [LO1] Consider the following information: Rate of Return if State Occurs State of Probability of State of Economy Economy Stock

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10. Returns and Standard Deviations [LO1] Consider the following information: Rate of Return if State Occurs State of Probability of State of Economy Economy Stock A Stock B Stock C Boom .15 .35 .40 .28 Good .45 .16 .17 .09 Poor .30 -.01 -.03 .01 Bust .10 -.10 -.12 -.09 page 460 a. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation

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