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	.35	.21	.42	.36
Good	.20	.14	.21	.15
Poor	.30	.05	-.09	-.05
Bust	.15	-.03	-.26	-.09

a.	Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Expected return

%

b-1.	What is the variance of this portfolio? (Round your answer to 5 decimal places.)

Variance of this portfolio

b-2.	The standard deviation? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Standard deviation

%

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	.35	.21	.42	.36
Good	.20	.14	.21	.15
Poor	.30	.05	-.09	-.05
Bust	.15	-.03	-.26	-.09

a.	Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Expected return

%

b-1.	What is the variance of this portfolio? (Round your answer to 5 decimal places.)

Variance of this portfolio

b-2.	The standard deviation? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Standard deviation

%