Consider the following information rate of return if state


Consider the following information: Rate of Return If State Occurs State of Probability of Economy

State of Economy Stock A Stock B Stock C

Boom .10 .30 .40 .20

Good .50 .15 .11 .09

Poor .35 −.02 −.05 −.03

Bust .05 −.10 −.15 −.07

a. Your portfolio is invested 32 percent each in A and C, and 36 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculaitons. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %

b-1 What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Variance

b-2 What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Financial Management: Consider the following information rate of return if state
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