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LO 1 LO2 10. Returns and Standard Deviations Consider the following information: State of Economy Probability of State of Economy Rate of Return if State

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LO 1 LO2 10. Returns and Standard Deviations Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom Good Poor Bust .15 .55 20 .10 .33 .11 .02 -.12 .45 .10 .02 -.25 .33 .17 -.05 -.09 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? b. What is the variance of this name

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