Question

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

.33

.43

.23

Good

.55

.18

.14

.12

Poor

.25

−.05

−.08

−.06

Bust

.05

−.13

−.18

−.10

  

a.	Your portfolio is invested 26 percent each in A and C, and 48 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.)
b-1.	What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.)
b-2.	What is the standard deviation? (Do not round interme

Answer 1