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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
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 | .35 | .20 | .41 | .25 |
Good | .25 | .11 | .16 | .15 |
Poor | .20 | .03 | .13 | .02 |
Bust | .20 | .17 | .20 | .11 |
a. Your portfolio is invested 30 percent each in Stocks A and C and 40 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?
Variance?
Standard Deviation?
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