Probability of Economy State

Probability of Economy State

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 .17 .358 .458 .338 Good .43 .128 .108 .178 Poor .33 .018 .028 .062 Bust .07 .118 .258 .098 Requirement 1: Your portfolio is invested 29 percent each in A and C and 42 percent in B. What is the expected return and the variance of the portfolio (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

 
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