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 .32 .42 .33 Good .45 .19 .13 .12 Poor .30 ?.05 ?.08 ?.06 Bust .10 ?.16 ?.28 ?.09

a.

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 calculaitons. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return %

b-1 What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)

Variance

b-2

What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation %