You work as a

You work as an economic analyst for an investment firm. You believe there are four possible states for the economy over the next year: Boom, Good, Poor, Bust. Your colleague Tosha has estimated the returns for three stocks based on those four scenarios. One of your clients has a portfolio that is $20\mathrm{.}00\%$ invested in Stock A and $30\mathrm{.}00\%$ invested in Stock C$.$ The rest of your client's portfolio is invested in Stock B$.$ Use the information below to calculate the expected return, variance, and standard deviation on your client's portfolio.

First fill in the missing probability and portfolio weight $($cells D$19$ and F$22).$

Calculate the actual return for the portfolio in each state.

Use those portfolio returns and the probabilities to calulcate the portfolio's expected return using the SUMPRODUCT function.

Calculate the squared deviation from the mean for each state of the economy.

Use the SUMPRODUCT function to get the variance $($the probability weighted average of the squared deviations$).$

Use the POWER function to convert the variance into the standard deviation.

$19$ points

Portfolio $E(R)$

Portfolio Variance

Portfolio Standard Deviation

You work as an economic analyst for an investment firm. You believe there are four possible states for the economy over the next year: Boom, Good, Poor, Bust. Your colleague Tosha has estimated the returns for three stocks based on those four scenarios. One of your clients has a portfolio that is $20\mathrm{.}00\%$ invested in Stock A and $30\mathrm{.}00\%$ invested in Stock C$.$ The rest of your client's portfolio is invested in Stock B$.$ Use the information below to calculate the expected return, variance, and standard deviation on your client's portfolio.

First fill in the missing probability and portfolio weight $($cells$.$ D$19$ and F$22).$

Calculate the actual return for the portfolio in each state.

Use those portfolio returns and the probabilities to calulcate the portfolio's expected return using the SUMPRODUCT function.

Calculate the squared deviation from the mean for each state of the economy.

Use the SUMPRODUCT function to get the variance $($the probability weighted average of the squared deviations$).$

Use the POWER function to convert the variance into the standard deviation.

$19$ points

$\backslash$table$[[$State$,$Probability$],[$Boom$,0\mathrm{.}15],[$Good$,0\mathrm{.}35],[$Por$,0\mathrm{.}30],[$Bust$,0\mathrm{.}20]]$

$\backslash$table$[[$Stock $A$n economic analyst for an investment firm. You believe there are four possible states for the economy over the next year: Boom, Good, Poor, Bust. Your colleague Tosha has estimated the returns for three stocks based on those four scenarios. One of your clients has a portfolio that is $20\mathrm{.}00\%$ invested in Stock A and $30\mathrm{.}00\%$ invested in Stock C$.$ The rest of your client's portfolio is invested in Stock B$.$ Use the information below to calculate the expected return, variance, and standard deviation on your client's portfolio.

First fill in the missing probability and portfolio weight $($cells$.$ D$19$ and F$22).$

Calculate the actual return for the portfolio in each state.

Use those portfolio returns and the probabilities to calulcate the portfolio's expected return using the SUMPRODUCT function.

Calculate the squared deviation from the mean for each state of the economy.

Use the SUMPRODUCT function to get the variance $($the probability weighted average of the squared deviations$).$

Use the POWER function to convert the variance into the standard deviation.

$19$ points

$\backslash$table$[[$State$,$Probability$],[$Boom$,0\mathrm{.}15],[$Good$,0\mathrm{.}35],[$Poor$,0\mathrm{.}30],[$Bust$,0\mathrm{.}20]]$

$\backslash$table$[[$Stock $A$