Calculate the expected return of portfolio

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Reference no: EM1359136

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 0.25 0.25 0.25 0.25
Good 0.35 0.08 0.14 0.14
Poor 0.25 -0.02 0.05 0.05
Bust 0.15 -0.15 -0.05 0.02

a. Portfolio is invested 16% each in A and C, and 68% in B. What is the expected return of the portfolio?
b. What is the variance of the this portfolio?(round your answer to 6 decimal places eg:32.161253).
c. What is the standard deviation(%)? (round your answers to 2 decimal places)

 

Reference no: EM1359136

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