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Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom
| Consider the following information: |
| Rate of Return If State Occurs | ||||||
| State of | Probability of | |||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||
| Boom | .16 | .363 | .463 | .343 | ||
| Good | .44 | .133 | .113 | .183 | ||
| Poor | .34 | .023 | .033 | .075 | ||
| Bust | .06 | .123 | .263 | .103 | ||
1)What is the variance of this portfolio?
2)What is the standard deviation of this portfolio?
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