Problem 11-10 Returns and Standard Deviations [LO 1, 2] Consider the following information: ...
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Finance
Problem 11-10 Returns and Standard Deviations [LO 1, 2]
Consider the following information:
State of
Probability of
Rate of Return If State Occurs
Economy
State of Economy
Stock A
Stock B
Stock C
Boom
.19
.360
.460
.340
Good
.41
.130
.110
.180
Poor
.31
.020
.030
?
.066
Bust
.09
?
.120
?
.260
?
.100
Your portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Variance What is the standard deviation of this portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation %
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