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 |
| .16 |
|
| .363 |
|
| .463 |
|
| .343 |
|
|
Good |
| .44 |
|
| .133 |
|
| .113 |
|
| .183 |
|
|
Poor |
| .34 |
|
| .023 |
|
| .033 |
| .075 |
|
| |
Bust |
| .06 |
| .123 |
| .263 |
| .103 |
|
| |||
Your portfolio is invested 29 percent each in A and C and 42 percent in B. What is the expected return of the portfolio? (Round to 2 decimal points)
Expected return 11.41%
What is the variance of this portfolio? (Round to 2 decimal points)
Variance ?
What is the standard deviation of this portfolio? (Round to 2 decimal points)
Standard deviation 15.12%
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