Consider the following information: state of economy probability of state of economy Rate of Return if State occurs Stock A Rate of Return is State Occurs Stock B Rate of Return is State Occurs Stock C
Boom .21 .368 .468 .348
Good .39 .138 .118 .188
Poor .29 .028 .038 -.093
Bust .11 -.128 -.268 -.108
Your portfolio is invested 29 percent each in A and C and 42 percent in B. What is the expected return of the portfolio? Expected Return: ____ %
What is the variance of this portfolio? Variance _____ %
What is the standard deviation of this portfolio? Standard Deviation ______%