What is the standard deviation of a portfolio invested


Problem:

State of Economy  Probability of State of Economy   Stock A Rate of Return   Stock B Rate of Return   Stock C Rate of Return
Boom    0.75    0.04    0.03     0.26
Bust      0.25    0.12    0.18    -0.02

Based on the information provided above, what is the expected return on an equally weighted portfolio of the stocks listed and what is the standard deviation of a portfolio invested 25 percent in A and B and 50 percent in C?

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