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Rate of Return If State Occurs State of Economy State of Probability Stock A Stock B Stock C Boom .15 .38 .48 .28 Good .45

Rate of Return If State Occurs

State of Economy State of Probability Stock A Stock B Stock C

Boom .15 .38 .48 .28

Good .45 .22 .19 .15

Poor .30 .04 .09 .06

Bust .10 .16 .34 .11

Your portfolio is invested 24 percent each in A and C, and 52 percent in B. What is the expected return of the portfolio?

What is the variance of this portfolio?

What is the standard deviation?

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