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

$\mathrm{.}10$

$\mathrm{.}50$

$\mathrm{.}25$

$\mathrm{.}15$

$\mathrm{.}35$

$\mathrm{.}16$

$\mathrm{.}02$

$\mathrm{.}12$

$\mathrm{.}40$

$\mathrm{.}15$

$\mathrm{.}03$

$\mathrm{.}18$

$\mathrm{.}27$

$\mathrm{.}08$

$\mathrm{.}04$

$\mathrm{.}10$

c$.$ Your portfolio is invested $30$ percent each in A and C$,$ and $40$ percent in B$.$ What is the expected

return of the portfolio?

d$.$ What is the variance of this portfolio? The standard deviation?