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  1. business
  2. accounting
  3. consider the following rates of return if a state

Consider the following rates of return if a state occurs: Stock K Stock L Stock...

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Accounting

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Consider the following rates of return if a state occurs: Stock K Stock L Stock M State of Probability of State Economy of Economy Boom 0.25 Good 0.50 Poor 0.15 Bust 0.10 0.25 0.08 -0.01 -0.05 0.20 0.12 -0.05 -0.10 0.45 0.18 -0.09 -0.20 1. Your portfolio is invested 25% in K, 35% in L, and 40% in M. What is the expected return of the portfolio? Please show your calculations. 2. What is the standard deviation of the portfolio? Please show your calculations

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