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

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 .15 .31 .41 .21
  Good .60 .16 .12 .10
  Poor .20 .03 .06 .04
  Bust .05 .11 .16 .08

  

a.

Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Standard deviation %

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