Question: DO NOT ROUND INTERMEDIATE CALCULATIONS Consider the following information: State of Probability of Rate of Return If State Occurs Economy State of Economy Stock A

DO NOT ROUND INTERMEDIATE CALCULATIONS

Consider the following information:

State of	Probability of		Rate of Return If State Occurs
Economy	State of Economy		Stock A		Stock B		Stock C
Boom		.19		.360		.460		.340
Good		.41		.130		.110		.180
Poor		.31		.020		.030		.066
Bust		.09		.120		.260		.100

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 calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % 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 What is the standard deviation of this portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation %

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