8a. What is the expected return on a portfolio which is invested 30 percent in stock A, 40 percent in stock B, and 30 percent in stock C?

8b. What is the standard deviation of a portfolio that is invested 68 percent in stock Q and 32 percent in stock R?

8c. You purchased a share of stock for $20. One year later you received $1 as dividend and sold the share for $29. What was your holding period return?

a. 45%

b. 5%

c. 50%

d. 40%

e. none of the above

State of Economy Boom Normal Recession Probability of Returns if State Occurs Stock B 10% 8% 3% State of Economy Stock A 10% 75% 15% Stock C 4% 9% 15% 17% 20 -10% a. 8.56 percent b. 8.62 percent c. 8.76 percent d. 8.79 e. 8.82 percent percent