2.

VoliuTC TOMOVILY VITULIUIT. Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy .66 .34 Stock A .09 .23 Stock B .03 .29 Stock C .34 -14 a. What is the expected return on an equally weighted portfolio of these th (Do not round intermediate calculations and enter your answer as rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 21 percent each in A and B and percent in C? (Do not round intermediate calculations and round your ar decimal places, e.g., 32.16161.) % Answer is complete but not entirely correct. % Expected return Variance of portfolio 14.43 0.00751 X You've observed the following returns on Yamauchi Corporation's stock over the pa five years: -26.4 percent, 14.6 percent, 32.2 percent, 2.8 percent, and 21.8 percent. a. What was the arithmetic average return on the stock over this five-year period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the variance of the returns over this period? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) c. What was the standard deviation of the returns over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Arithmetic average return b. Variance C. Standard deviation