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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 .25 .19 .35 .32
Good .15 .14 .24 .15
Poor .10 .05 -.07 -.07
Bust .50 -.06 -.28 -.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 %

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