Question: Returns and Standard Deviations (L01, 2) Consider the following information: Rate of Return if State Occurs Boom .10 .35 .45 .27 Good .60 .16 .10

Returns and Standard Deviations (L01, 2) Consider the following information: Rate of Return if State Occurs Boom .10 .35 .45 .27 Good .60 .16 .10 .08 Poor .25 -.01 -.06 -.04 Bust .05 -.12 -.20 -.09 a. Your portfolio is invested 30% each in A and C, and 40% in B. What is the expected return of the portfolio? I). What is the variance of this portfolio? The standard deviation

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