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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 .25 .19 .35 .28
Good .30 .14 .13 .14
Poor .10 .00 .10 .05
Bust .35 .20 .28 .13

a. Your portfolio is invested 35 percent each in Stocks A and C and 30 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.)

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

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

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