State Prob. Boom 40% Normal 20% Bust 40% BETA Portfolio ABC Stock A 10% 8% 4% Stock B 25% 10% -5% 1.25 Stock C -1% 7% 12% -1.00 25% 0.60 50% 25% 25) What is the expected return of Portfolio ABC? A) 7.20% B) 7.55% C) 7.67% D) 8.25% E) 8.35% Answer: 26) What is the standard deviation of Portfolio ABC's expected return? A) 0.11% B) 3.26% C) 7.67% D) 27.69% E) 36.25% Answer: 27) What is Portfolio ABC's Beta? A) -0.86 B) -0.36 C) 0.36 D) 0.86 E) 1.25