Returns and Standard Deviations [LO1] Consider the following information:

a. Your Portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected rutrn of the portfolio?

b. What is the variance of this portfolio? The standard deviation?

Rate of Return if State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy 0.15 0.45 0.35 0.05 Stock A 0.30 0.12 0.01 0.06 Stock B 0.45 0.10 -0.15 -0.30 Stock C 0.33 0.15 0.05 -0.09