Question

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

Consider the following information:

State of Probability of Rate of Return If State Occurs
Economy State of Economy Stock A Stock B Stock C
Boom .15 .362 .462 .342
Good .45 .132 .112 .182
Poor .35 .022 .032 ? .068
Bust .05 ? .122 ? .262 ? .102

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 calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return 11.33 %

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            

What is the standard deviation of this portfolio? (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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