Question

# Problem 13-10 Returns and Standard Deviations [LO1] Consider the following information:    Rate of Return If...

Problem 13-10 Returns and Standard Deviations [LO1]

 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 .20 .38 .48 .28 Good .50 .14 .19 .12 Poor .20 −.05 −.08 −.06 Bust .10 −.19 −.23 −.09

 a. Your portfolio is invested 22 percent each in A and C, and 56 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.)

 Standard deviation #### Earn Coins

Coins can be redeemed for fabulous gifts.