Your portfolio is invested 29 percent each in a and c and


Consider the following information: state of economy probability of state of economy Rate of Return if State occurs Stock A Rate of Return is State Occurs Stock B Rate of Return is State Occurs Stock C

Boom .21 .368 .468 .348

Good .39 .138 .118 .188

Poor .29 .028 .038 -.093

Bust .11 -.128 -.268 -.108

Your portfolio is invested 29 percent each in A and C and 42 percent in B. What is the expected return of the portfolio? Expected Return: ____ %

What is the variance of this portfolio? Variance _____ %

What is the standard deviation of this portfolio? Standard Deviation ______%

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Financial Management: Your portfolio is invested 29 percent each in a and c and
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