What is the variance of this portfolio

Reference no: EM13290663

Consider the following information:

Rate of Return if State Occurs
State of Economy Probability of
State of Economy Stock A Stock B Stock C
Boom .20 .35 .33 .25
Good .30 .16 .08 .13
Poor .09 .06 -.01 .05
Bust .41 -.01 -.11 -11.95

Requirement 1:

Your portfolio is invested 24 percent each in A and C, and 52 percent in B. What is the expected return of the portfolio? (Do not round your intermediate calculations.)

Requirement 2:
(a) What is the variance of this portfolio? (Do not round your intermediate calculations.)

(b) What is the standard deviation? (Do not round your intermediate calculations.)

Reference no: EM13290663

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