You decide to invest in a portfolio consisting of 32 percent Stock A, 46 percent Stock...

You decide to invest in a portfolio consisting of 32 percent Stock A, 46 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio?

State of Economy	Probability of State		Return if State Occurs
State of Economy	of Economy		Stock A		Stock B		Stock C
Recession		.113	−	10.00%	−	3.40%	−	12.40%
Normal		.663		9.30%		10.64%		16.80%
Boom		.224		21.53%		25.07%		29.77%

rev: 04_25_2019_QC_CS-167128

Multiple Choice

.01088
.00846
.00806
.00910
.00749

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Expert Solution

ekkarill92 answered 1 year ago

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