Answers Options:

a) 0.00946

b) 0.00837

c) 0.00778

d) 0.00879

e) 0.01130

Please use excel to solve and show the formulas used

You decide to invest in a portfolio consisting of 27 percent Stock A, 38 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio? Probability of State of Economy State of Economy Recession 0.105 Normal 0.647 Boom 0.248 Return if State Occurs Stock A Stock B Stock C -9.20% -2.60% -11.60% 8.50% 10.48% 16.00% 21.37% 24.75% 29.45%