Consider the following information: Rate of...
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Finance
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 | 0.20 | 0.19 | 0.46 | 0.32 |
| Good | 0.40 | 0.12 | 0.19 | 0.14 |
| Poor | 0.10 | 0.04 | 0.09 | 0.05 |
| Bust | 0.30 | 0.04 | 0.30 | 0.09 |
a. Your portfolio is invested 20 percent each in A and C and 60 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.)
b-2. What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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