WOULOU Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A Stock C Stock B

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WOULOU Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A Stock C Stock B .44 Boom Good .15 35 .34 18 .55 Poor 1.09 -.04 Bust .25 .05 -.02 -12 -12 -.05 -30 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., 32.16.) b-1. What is the variance 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., 32.16.) a. Expected return to b-1. Variance b-2. Standard deviation

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