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I need assistance finding the variance and deviation Consider the following information Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C

I need assistance finding the variance and deviation!

Consider the following information:

   

Rate of Return If State Occurs

State of Probability of  
Economy State of Economy Stock A Stock B Stock C
        Boom   .16       .363     .463     .343    
        Good   .44       .133     .113     .183    
        Poor   .34       .023     .033     Acˆ’.075    
        Bust   .06       Acˆ’.123     Acˆ’.263     Acˆ’.103    
 

Requirement 1: Your portfolio is invested 29 percent each in A and C and 42 percent in B.

What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Expected return of the portfolio 11.41 %

Requirement 2: (a) What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places (e.g., 32.16161).)

Variance of the portfolio (b)

What is the standard deviation of this portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Standard deviation %

 

Apr 30 2020 View more View Less

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