Question
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 | .17 | .364 | .464 | .344 |
Good | .43 | .134 | .114 | .184 |
Poor | .33 | .024 | .034 | .089 |
Bust | .07 | .124 | .264 | .104 |
1. Your portfolio is invested 28 percent each in A and C and 44 percent in B. What is the expected return of the portfolio?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
2. What is the variance of this portfolio?
Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.
3. What is the standard deviation of this portfolio?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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