Solve and show your work for finding the standard deviation of the portfolio using two methods (i.e., Method 1: ex ante using states of nature; and Method 2: matrix multiplication).

State of Nature	Returns per State of Nature for Each Security
RF	Market	w	x	y	z	Portfolio
Prob; Weights	16.67%	16.67%	16.67%	16.67%	16.67%	16.67%	100.00%
Good	20%	4.00%	14.00%	-1.00%	18.00%	10.00%	6.00%
Average	50%	4.00%	8.00%	6.00%	12.00%	6.20%	4.50%
Poor	30%	4.00%	2.00%	10.00%	-3.40%	3.30%	3.50%
Mean
Variance
Std Dev
beta
Required Return (CML)
CML efficient (Y/N)
Required Return (SML)
SML efficient (Y/N)
Mean Var Efficient Set

Covariance	RF	Market	w	x	y	z	Portfolio
RF
Market
w
x
y
z
Portfolio

Correlation	RF	Market	w	x	y	z	Portfolio
RF
Market
w
x
y
z
Portfolio

Matrix Multiplication for Portfolio Variance:

Weights' (1x6)

Variance/Covariance Matrix (6X6)

Weights (6x1)

Weights*Variance/Covariance matrix (1x6)

Weights (6x1)

Variance of Portfolio (1x1)

Standard Deviation of Portfolio