b) Consider the following information: Rate of Return Stock Blue 45 State Probability of Event Stock Red Stock Green 27 Boom 10 35 Good 60 16 10 .08 Poor 25 -01 -06 -04 Bust .05 -12 -20 - 09 Your portfolio is invested 30% each in Red and Green, and 40% in Blue. a) What is the expected return of the portfolio? b) What is the variance of this portfolio? c) What is the standard deviation?

b) Consider the following information: Rate of Return Stock Blue 45 State Probability of Event Stock Red Stock Green 27 Boom 10 35 Good 60 16 10 .08 Poor 25 -01 -06 -04 Bust .05 -12 -20 - 09 Your portfolio is invested 30% each in Red and Green, and 40% in Blue. a) What is the expected return of the portfolio? b) What is the variance of this portfolio? c) What is the standard deviation?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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