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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom
Consider the following information:
State of Economy Probability of State of Economy Rate of Return if State Occurs
Stock A Stock B Stock C
Boom
Good
Poor
Bust
a Your portfolio is invested percent each in Stocks A and C and percent in Stock B What is the expected return of the portfolio?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
b What is the variance of this portfolio?
Note: Do not round intermediate calculations. Round your answer to decimal places.
b What is the standard deviation?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
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