Problem 11-10 Returns and Standard Deviations [LO 1, 2] Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Stock A Stock B Stock C Economy Boom .17 .352 .452 .332 Good .43 .122 .102 .172 Poor .33 .012 .022 -.052 Bust .07 -.112 -.252 -.092 a. Your portfolio is invested 32 percent each in A and C and 36 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.) b. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) c. 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.) Answer is complete but not entirely correct. a. Expected return 10.86 % b. Variance 220.32387 x C. Standard deviation 14.84 %