9. Return and Standard Deviations. Consider the following information:Rate of Return if State OccursState of Economy Probability of State of Economy Stock A Stock B Stock C.35.28.16BoomGoodPoorBust.15.45.30.10-.01-.10.40.17-.03-.12.09.01-.09a. Your portfolio is invested 30 percent each in A and C percent in B. What is the expectedreturn of the portfolio?b. What is the variance of this portfolio? The standard deviation?

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9. Return and Standard Deviations. Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .35 Good Poor Bust .15 .45 .30 .10 .16 -.01 -.10 .40 .17 -.03 -.12 .28 .09 .01 -.09 a. Your portfolio is invested 30 percent each in A and C percent in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation?

9. Return and Standard Deviations. Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .35 Good Poor Bust .15 .45 .30 .10 .16 -.01 -.10 .40 .17 -.03 -.12 .28 .09 .01 -.09 a. Your portfolio is invested 30 percent each in A and C percent in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 6P: The market and Stock J have the following probability distributions: a. Calculate the expected rates...

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