Problem 13-10 Returns and Standard Deviations (LO1) 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 .37 47 .27 Good .50 .21 .18 .12 Poor .20 -05 -08 -05 Bust .05 -15 -.33 -10 .25 a. Your portfolio i invested 25 percent each in A and C, and 50 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-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Stock A Stock B State of Economy Boom Good Poor Bust Probability of State of Economy .25 .50 .20 .05 .37 .21 -05 -.15 .47 .18 -.08 -33 Stock C .27 .12 -.05 -10 a. Your portfolio is invested 25 percent each in A and C, and 50 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-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) ces % a. Expected return b-1. Variance b-2. Standard deviation %