Question

Consider the following information:

		Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B	Stock C
Boom	.35	.20	.41	.25
Good	.25	.11	.16	.15
Poor	.20	−.03	−.13	−.02
Bust	.20	−.17	−.20	−.11

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

Expected Return?

Variance?

Standard Deviation?

Answer 1