hapter Thirteen

$\backslash$table$[[$State of Economy,$\backslash$table$[[$Probability of State$],[$of Economy$]],$Rate of Return if State Occurs$],[$Stock A$,$Stock B$,$Stock C$],[$Boom$,\mathrm{.}15,\mathrm{.}35,\mathrm{.}45,\mathrm{.}25],[$Good$,\mathrm{.}60,19,16,\mathrm{.}10],[$Poor$,\mathrm{.}20,-\mathrm{.}03,-\mathrm{.}06,-\mathrm{.}05],[$Bust$,\mathrm{.}05,-\mathrm{.}13,-\mathrm{.}31,-\mathrm{.}08]]$

a$.$ 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$.,32\mathrm{.}16.)$

b$-1.$ What is the variance of this portfolio? $($Do not round intermediate calculations and round your answer to $5$ decimal places, e$.$g$.,16161.)$

b$-2.$ What is the standard deviation? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[$a$.$ Expected return,$12\mathrm{.}79,\%$