Question: 10. value: 5.26 points Problem 13-10 Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Economy Boom
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10. value: 5.26 points Problem 13-10 Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy 15 55 .25 .05 Stock A 34 .18 -02 - 12 Stock B 44 15 -05 - 30 Stock C 35 09 -.04 -07 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? (Do not round intermediate calculaitons. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % b-1 What 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-2 What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation %
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