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Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .20 .24 .45 .33

Rate of Return if State Occurs
State of Probability of
Economy State of Economy Stock A Stock B Stock C
Boom .20 .24 .45 .33
Good .35 .09 .10 .15
Poor .30 .03 - .10 - .05
Bust .15 - .05 - .25 - .09

a.

Your portfolio is invested 30 percent each in A and C, and 40 percent in B . What is the expected return of the portfolio? (Do not round intermediate calculations and round your answer 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 and round your answer to 2 decimal places. (e.g., 32.16))

Standard deviation %

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