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You decide to invest in a portfolio consisting of 28 percent Stock A, 48 percent Stock B, and the remainder in Stock C. Based on
You decide to invest in a portfolio consisting of 28 percent Stock A, 48 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio? State of Economy Economy Recession Normal Boom " Probability of State of Economy . 115 .667 .218 Return if State Occurs Stock A Stock B Stock C - 10.20% - 3.60% -12.60% 9.50% 10.68% 17.00% 21.57% 25.15% 29.85% o 00865 o 00930 o 00823 o 01112 o 00766
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