Question
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
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 | .17 | .352 | .452 | .332 | |||||||||
| Good | .43 | .122 | .102 | .172 | |||||||||
| Poor | .33 | .012 | .022 | .052 | |||||||||
| Bust | .07 | .112 | .252 | .092 | |||||||||
Your portfolio is invested 32 percent each in A and C and 36 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Variance What is the standard deviation of this portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation %
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