Rate of Return if State Occurs

SoccerBoss
Category:
Business & Finance
Price: $10 USD

Question description

Consider the following information:

Rate of Return if State Occurs
 State ofProbability of
 EconomyState of EconomyStock AStock BStock C
 Boom0.150.350.450.27
 Good0.550.160.100.08
 Poor0.250.010.060.04
 Bust0.050.120.200.09

a.

Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16))


 Expected return %  

b-1What 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-2What is the standard deviation? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))

 Standard deviation %  

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