Question: Returns and Standard Deviations (LO1, 2) Consider the following information: Rate of Return if State Occurs Boom 10 35 45 27 Good 60 .16 Poor

Returns and Standard Deviations (LO1, 2) Consider the following information: Rate of Return if State Occurs Boom 10 35 45 27 Good 60 .16 Poor 10 08 25 -01 - 06 Bust -.04 .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? b. What is the variance of this portfolio? The standarddeviation?

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