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7. Based on the following information Return on State of Economy Probability of state Return on stock B Return on Stock C Stock A Of
7. Based on the following information Return on State of Economy Probability of state Return on stock B Return on Stock C Stock A Of Economy Boom 0.15 0.26 0.40 0.38 Good 0.45 0.10 0.18 0.15 Poor 0.35 0.02 -0.19 -0.03 Bust 0.05 -0.08 -0.32 -0.06 a. Your portfolio is invested 35 percent each in A and C, and 30 percent in b. What is the expected return of the portfolio? C. What is the variance of this portfolio? The standard deviation?||
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