Your portfolio is invested 30 percent each in A and C and 40 percent in B. What

Question

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 percentage rounded to 2 decimal places (e.g., 32.16).)

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

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).)

Explanation / Answer

1. Expected return = [[36.5 x 0.18] + [13.5 x 0.42] + [2.50 x 0.32] + [-12.50 x 0.08]] x 0.30 + [[46.5 x 0.18] + [11.50 x 0.42] + [3.50 x 0.32] + [-26.5 x 0.08]] x 0.40 + [[34.5 x 0.18] + [18.5 x 0.42] + [-9 x 0.32] + [-10.5 x 0.08]] x 0.30

= 3.612 + 4.88 + 3.078

= 11.57%

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