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EASY FINANCE 101 QUESTION WILL GIVE POINTS ASAP Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of

EASY FINANCE 101 QUESTION WILL GIVE POINTS ASAP

Consider the following information:

Rate of Return if State Occurs
State of Probability of
Economy State of Economy Stock A Stock B Stock C
Boom .10 .34 .44 .24
Good .60 .19 .15 .08
Poor .25 ? .01 ? .09 ? .07
Bust .05 ? .15 ? .19 ? .11

a.

Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Expected return %

b-1 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

b-2

What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Standard deviation %

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