Question: Given the following information, calculate the expected return and standard deviation for a portfolio that has 45 percent invested in Stock A, 44 percent in
Given the following information, calculate the expected return and standard deviation for a portfolio that has 45 percent invested in Stock A, 44 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
| Returns | ||||
| State of Economy | Probability of State of Economy | Stock A | Stock B | Stock C |
| Boom | .70 | 14% | 23% | 24% |
| Bust | .30 | 15% | 0% | -15% |
a. Expected return = ?
b. Standard deviation = ?
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