Consider the

X Returns and standard deviations - Excel ? 5 X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Arial 12 % A Paste BIU - Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A D18 : fx AB D E F G H 1 2 3 Consider the following information. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? What is the variance of the portfolio? The standard deviation? 4 5 6 7 8 State Boom Good Poor Bust Probability 0.10 0.60 0.25 0.05 Stock A 0.35 0.16 (0.01) (0.12) Stock B 0.45 0.10 (0.06) (0.20) Stock C 0.27 0.08 (0.04) (0.09) 9 10 11 12 weights 0.30 0.40 0.30 13 14 15 Complete the following analysis. Do not hard code values in your calculations. 10 C D E F H 9 Poor Bust 0.25 0.05 (0.01) (0.12) (0.06) (0.20) G (0.04) (0.09) 10 11 12 weights 0.30 0.40 0.30 13 14 15 Complete the following analysis. Do not hard code values in your calculations. 16 17 Portfolio Return Return Deviation Squared Deviation Product Product 18 19 State Boom Good Poor Bust 20 21 22 E(R) = Variance = 23 24 Standard Deviation = 25