Question: Returns and Standard Deviations consider the following information. a. Your portfolio is invested 30 percent each in A and C, and 40 percent in-B. What

Returns and Standard Deviations 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 standard deviation?

Probability of State of Rate of Return if State Occurs State of

Probability of State of Rate of Return if State Occurs State of Economy Economy Stock B 45 Stock A Stock C 20 33 Boom 30 Good 40 .10 .15 12 30 -.05 Poor 01 -15 Bust - 30 -09 -06 .10

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