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You decide to invest in a portfolio consisting of 15 percent Stock A, 50 percent Stock B, and the remainder in Stock C. Based on

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You decide to invest in a portfolio consisting of 15 percent Stock A, 50 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio return? Probability of State Return if State Occurs State of Economy of Economy Stock A Stock B Stock C Recession .20 12.6% 5% 13% Normal .50 6.90% 10.3% 17.4% Boom .30 21.65% 28.31% 25.01%

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