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What is the variance of portfolio

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Reference no: EM133121332

Consider the following information: 

State of Economy

Probability of State of Economy

Stock A

Stock B

Stock C

Boom

.05

0.07

0.05

0.08

Good

.15

0.15

0.06

0.07

Poor

.35

0.26

0.02

0.05

Bust

.45

-0.10

-0.06

-0.05

a. Your portfolio is invested 25% each in A and C, and 50 percent in B. What is the expected return of the portfolio?

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

Reference no: EM133121332

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