Economy Boom Good Poor Bust State of Probability of State of Economy Rate of Return if...

Transcribed Image Text:

Economy Boom Good Poor Bust State of Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C 0.20 0.20 0.33 0.29 0.30 0.15 0.12 0.13 0.20 0.30 0.01 -0.21 -0.09 -0.06 -0.26 -0.13 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 calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return Answer is complete and correct. 2.34 % b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.) Answer is complete but not entirely correct. Variance 0.17550X b-2. What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Standard deviation 41.89% Prev 5 of 10 Next > Economy Boom Good Poor Bust State of Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C 0.20 0.20 0.33 0.29 0.30 0.15 0.12 0.13 0.20 0.30 0.01 -0.21 -0.09 -0.06 -0.26 -0.13 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 calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return Answer is complete and correct. 2.34 % b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.) Answer is complete but not entirely correct. Variance 0.17550X b-2. What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Standard deviation 41.89% Prev 5 of 10 Next >