P13-10 Returns and Standard Deviations [LO1] Consider the following information: Rate of Return if State Occurs Probability of State of Economy State of Economy Boom Good Poor Bust -15 .55 .25 .05 Stock A 33 .18 -.05 -13 Stock B 43 .14 -08 -18 Stock C 23 .12 -.06 -10 Your portfolio is invested 26 percent each in A and C, and 48 percent in B. What is the expected return of the portfolio? 10.86% 14.36% 7.46% 17.56% 24.86% What is the variance of this portfolio? 0.0206 0.6206 (0.7794) 1.2206 2.3206 What is the standard deviation? 14.35% 16.55% 12.05% 11.05% 18.75%