Question: Consider the following information: a. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected

Consider the following information:

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?
b. What is the variance of this portfolio? The standarddeviation?

Rate of Return If State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy .15 .55 .25 .05 Stock A .35 16 Stock B Stock C 45 10 -.06 -.20 .27 .08 -01 -04 -.09 -.12

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