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Consider the following information: Rate of Return if State Occurs. State of Probability of State Economy of Economy Stock A Stock B Stock C Boom
Consider the following information: Rate of Return if State Occurs. State of Probability of State Economy of Economy Stock A Stock B Stock C Boom .30 - 20 . 44 . 31 Good .30 . 13 .20 . 13 Poor .20 . 03 -.09 -.05 Bust .20 -.05 -. 28 -.09 a. Your portfolio is invested 15 percent each in Stocks A and C and 70 percent in Stock 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.) Expected return % b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.) Variance 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 %
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