Question: Returns and Standard Deviations (LO1, 2) Consider the following information: Boom Good Poor Bust Rate of Return if State Occurs Probability of State of Econonn

Returns and Standard Deviations (LO1, 2) Consider the following information: Boom Good Poor Bust Rate of Return if State Occurs Probability of State of Econonn Stock 1 Sack B 10 35 45 .60 16 10 25 - 06 05 -.12 - 20 27 08 -04 -.09 a. Your portfolio is invested 30% each in A and C. and 40% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standarddeviation?

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