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 | .16 | .357 | .457 | .337 |
Good | .44 | .127 | .107 | .177 |
Poor | .34 | .017 | .027 | .057 |
Bust | .06 | .117 | .257 | .097 |
Your portfolio is invested 32 percent each in A and C and 36 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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