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Consider the following information Rate of Return If State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy Stock A 359
Consider the following information Rate of Return If State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy Stock A 359 .129 019 Stock B 459 Stock C 339 179 065 -.099 42 .109 32 08 029 -.259 Requirement 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? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return of the portfolio Requirement 2: (a) What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places (e.g., 32.16161).) Variance of the portfolio (b) What is the standard deviation of this portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviation You own a stock portfolio invested 27 percent in Stock Q, 17 percent in Stock R, 43 percent in Stock S, and 13 percent in Stock T. The betas for these four stocks are .96, 1.02, 1.42, and 1.87, respectively. Required: What is the portfolio beta? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Portfolio beta
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