Question: 10. Returns and Standard Deviations (LO1, 2) Consider the following information: State of Economy Boom Good Poor Bust Probabil ity of State of Economy .10

10. Returns and Standard Deviations (LO1, 2) Consider the following information: State of Economy Boom Good Poor Bust Probabil ity of State of Economy .10 .60 .25 .05 Rate of Return if State Occurs Stock A .35 .16 -.01 -.12 Stock B Stock C .45 .27 .10 .08 -.06 -.20 -.04 -.09 a. Your portfolio is invested 30% each in A and C, and 40% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation?

10. Returns and Standard Deviations (LO1,2) Consider the following information: a. Your portfolio is invested 30% each in A and C, and 40% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation

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