Question

Given the following information, calculate the expected return and standard deviation for a portfolio that has...

Given the following information, calculate the expected return and standard deviation for a portfolio that has 49 percent invested in Stock A, 30 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Returns
State of
Economy
Probability of
State of Economy
Stock A Stock B Stock C
Boom .70 16 % 23 % 26 %
Bust .30 8 0 −8

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