## 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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

EXPERT ANSWER Investment in Stock A =0.30 Investment in Stock A =0.40 Investment in Stock C=0.30 Boom E(Rp)= 0.30(0.34) +0.40( 0.44) +0.30(0.35) = 0.102+ 0.176+ 0.105 =0.3830 or 38.30% Good E(Rp)= 0.30(0.18) +0.40( 0.15) +0.30(0.09) = 0.054+ 0.06+ 0.027 = 0.1410 or 14.10% Poor E(Rp)= 0.30(-0.02) +0.40( -0.05) +0.30(-0.04) = -0.006+ -0.02+ -0.01 = -0.0380 …