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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

.20

.355

.455

.335

Good

.40

.125

.105

.175

Poor

.30

.015

.025

.055

Bust

.10

.115

.255

.095

Your portfolio is invested 30 percent each in A and C and 40 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.

What is the variance of this portfolio?

Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.

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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