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You decide to invest in a portfolio consisting of 26 percent Stock A, 43 percent...

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Finance

You decide to invest in a portfolio consisting of 26 percent Stock A, 43 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio?

State of Economy Probability of State Return if State Occurs
of Economy Stock A Stock B Stock C
Recession .127 11.40% 4.80% 13.80%
Normal .691 10.70% 10.92% 18.20%
Boom .182 21.81% 25.63% 30.33%

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