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Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom
| Consider the following information: |
| Rate of Return If State Occurs | ||||||
| State of | Probability of | |||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||
| Boom | .19 | .354 | .454 | .334 | ||
| Good | .41 | .124 | .104 | .174 | ||
| Poor | .31 | .014 | .024 | .054 | ||
| Bust | .09 | .114 | .254 | .094 | ||
| a. | Your portfolio is invested 28 percent each in A and C and 44 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. | What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) |
| c. | What is the standard deviation of this portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0133392883
