Question: Find the return deviation, squared deviation and the product. Stock A boom probability 0.10 good poor bust Q6: Returns and Standard Deviations: Consider the following

Find the return deviation, squared deviation and the product.

Stock A boom probability 0.10 good poor bust Q6: Returns and Standard Deviations: Consider the following information: Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .10 .35 .40 .27 Good .50 .16 .15 .08 Poor .25 -.02 -.03 -.04 Bust .15 -.12 -.18 -.10 c. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? d. What is the variance of this portfolio? The standard deviation? 0.30 portfolio return product return deviation squared deviation product 0.346 0.0346 0.5 0.132 0.066 0.25 -0.624 -0.156 0.15 0.138 0.0207

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