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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 .15 .35 .45 .33
Good .50 .12 .10 .17
Poor .25 .01 .02 ?.05
Bust .10 ?.11 ?.25

?.09

Requirement 1:

Your portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places

Requirement 2:
(a)

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

b)

What is the standard deviation of this portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places

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