Consider the following information:

		Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B	Stock C
Boom	.10	.30	.40	.20
Good	.50	.15	.11	.09
Poor	.35	.02	.05	.03
Bust	.05	.10	.15	.07

Requirement 1:

Your portfolio is invested 32 percent each in A and C, and 36 percent in B. What is the expected return of the portfolio?

Requirement 2:

(a)	What is the variance of this portfolio?
(b)	What is the standard deviation?

(Do not round your intermediate calculations.)