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S13-10 Returns and Standard Deviations (L01] Consider the following Information: Rate of Return if State Occurs State of Probability of State of Economy Economy Stock
S13-10 Returns and Standard Deviations (L01] Consider the following Information: Rate of Return if State Occurs State of Probability of State of Economy Economy Stock A Stock B Stock Boom .10 .35 .40 27 Good .60 .16 .17 .08 Poor -.01 -.03 -.04 Bust .05 - .12 -.18 -09 25 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 enter your answer as a percent rounded to 2 decimal places, e.g.. 3216.) b-1. What is the varlance 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. 3216.) 10.41% a. Expected return b. Variance Standard deviation C
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