Question: S13-10 Returns and Standard Deviations [LO1] Consider the following information Rate of Return if State Occurs State of Probability of Economy Economy Boom Good Poor

S13-10 Returns and Standard Deviations [LO1] Consider the following information Rate

S13-10 Returns and Standard Deviations [LO1] Consider the following information Rate of Return if State Occurs State of Probability of Economy Economy Boom Good Poor Bust State of Stock A 35 16 Stock C .27 08 -.04 -.09 Stock B 10 60 25 05 40 17 -.03 - 18 12 Your portfolio is invested 30 percent each in A and C, and 40 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.) a. 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.) a. Expected return b. Variance c. Standard deviation

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