Question: L01 10. Returns and Standard Deviations. Consider the following information: LO 2 State of Economy Probability of State of Economy Rate of Return If State

L01 10. Returns and Standard Deviations. Consider the following information: LO 2 State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom . 15 .35 .45 33 Good Poor .50 .25 .10 .12 .01 -.11 .10 .02 -25 .17 -.05 Bust -.09 a. Your portfolio is invested 25 percent each in A and Cand 50 percent in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation? .. . Datae You own a stock portfolio invested 15 nercent

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