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Consider the following information: State of Probability of Rate of Return if State Occurs Economy State of Economy Stock A Stock B Stock C
Consider the following information: State of Probability of Rate of Return if State Occurs Economy State of Economy Stock A Stock B Stock C Boom .21 .368 .468 .348 Good .39 .138 .118 .188 Poor .29 Bust .11 .028 -.128 .038 -.093 -.268 -.108 a. Your portfolio is invested 29 percent each in A and C and 42 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. b. What is the variance of this portfolio? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161. c. 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. a. Expected return b. Variance c. Standard deviati 12.03 % 3.10000 % x 5 decimal places required.
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