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Consider the following information: 1.) Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected
Consider the following information: 1.) Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16)) 2.) What is the Variance of this portfolio? 3.) What is the Standard deviation? |
Rate of Return if State Occurs | ||||||||||||
State of | Probability of | | ||||||||||
Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
Boom | 0.20 | 0.31 | 0.41 | 0.32 | ||||||||
Good | 0.50 | 0.18 | 0.12 | 0.11 | ||||||||
Poor | 0.25 | ? | 0.04 | ? | 0.07 | ? | 0.05 | |||||
Bust | 0.05 | ? | 0.15 | ? | 0.27 | ? | 0.08 |
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