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?

State of Rate of Returnf Stte Occurs Probability of Economy State otEonomyStockA Stock BStock C Boom Good Pocr Bust 15 45 35 05 .30 .12 .01 -.20 .45 .10 -.15 .30 .33 15 05 .09

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