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 | .19 | .354 | .454 | .334 | |||||||||
Good | .41 | .124 | .104 | .174 | |||||||||
Poor | .31 | .014 | .024 | .054 | |||||||||
Bust | .09 | .114 | .254 | .094 | |||||||||
Your portfolio is invested 28 percent each in A and C and 44 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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