10) State of Economy Boom Good Poor Bust Probability 0.1 0.6 0.25 0.05 a. Stock A 0.35 0.16 -0.01 -0.12 Stock B 0.45 Stock C 0.27 0.08 -0.04 -0.09 Your portfolio is invested 30% each in A and C and 40% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation?

a. Your portfolio is invested 30% each in A and C and 40% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation? a. Your portfolio is invested 30% each in A and C and 40% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation