Consider the following information:

State of Economy Boom Good Poor Bust

Probability 0.20 0.35 0.30 0.15

Rate of Return Stock A 0.24 0.09 0.03 -0.05

Rate of Return Stock B 0.45 0.10 -0.10 0.25

Rate of Return Stock C 0.33 0.15 -0.05 -0.09

a. Your portfolio is invested 30 percent each in A and C and 40% in B.What is the expected return of the portfolio?

b-1. What is the variance of this portfolio?

b-2. What is the standard deviation?