Consider the following information:

Rate of Return if State Occurs

State of

Economy

Probability of

State of Economy

Stock AStock BStock C Boom.20 .20 .33 .29 Good.15 .15 .12 .13 Poor.20 .01 .09 .06 Bust.45 .21 .26 .13

a.Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Expected return%

b-1.What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.)

Variance of this portfolio

b-2.What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Standard deviation%