Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock...

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Finance

Consider the following information:
Rate of Return If State Occurs
State of Probability of
Economy State of Economy Stock A Stock B Stock C
        Boom 0.16     0.363     0.463     0.343
        Good 0.44     0.133     0.113     0.183
        Poor 0.34     0.023     0.033     ?0.075
        Bust 0.06     ?0.123     ?0.263     ?0.103
Requirement 1:
Your portfolio is invested 29 percent each in A and C and 42percent in B. What is the expected return of the portfolio?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use therounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g.,32.16).)
  Expected return of the portfolio %
Requirement 2:
(a)
What is the variance of this portfolio?(Enter rounded answer as directed, but donot use the rounded numbers in intermediate calculations.Round your answer to 5 decimal places(e.g., 32.16161).)
  Variance of the portfolio
(b)
What is the standard deviation of this portfolio? (Donot include the percent sign (%). Enter roundedanswer as directed, but do not use the rounded numbers inintermediate calculations. Round your answer to 2decimal places (e.g., 32.16).)
  Standard deviation %

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State ofProbability ofEconomyState of EconomyStock AStock Bstock See Answer

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Consider the following information:Rate of Return If State OccursState ofProbability ofEconomyState of EconomyStock AStock BStock C Boom0.16 0.363 0.463 0.343 Good0.44 0.133 0.113 0.183 Poor0.34 0.023 0.033 ?0.075 Bust0.06 ?0.123 ?0.263 ?0.103 Requirement 1:Your portfolio is invested 29 percent each in A and C and 42percent in B. What is the expected return of the portfolio?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use therounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g.,32.16).) Expected return of the portfolio%Requirement 2:(a)What is the variance of this portfolio?(Enter rounded answer as directed, but donot use the rounded numbers in intermediate calculations.Round your answer to 5 decimal places(e.g., 32.16161).) Variance of the portfolio (b)What is the standard deviation of this portfolio? (Donot include the percent sign (%). Enter roundedanswer as directed, but do not use the rounded numbers inintermediate calculations. Round your answer to 2decimal places (e.g., 32.16).) Standard deviation%

			Rate of Return If State Occurs
State of	Probability of
Economy	State of Economy		Stock A	Stock B	Stock C
Boom		0.16	0.363	0.463	0.343
Good		0.44	0.133	0.113	0.183
Poor		0.34	0.023	0.033	?0.075
Bust		0.06	?0.123	?0.263	?0.103