problem: Consider the following data:
Rate of Return if State Occurs
State of Economy

Probability of State of Economy

Stock A

Stock B

Stock C

Boom

.20

.30

.45

.33

Good

.40

.12

.10

.15

Poor

.30

.01

.15

.05

Bust

.10

.06

.30

.09

The portfolio is invested 30% each in A and C, & 40% in B. find out the expected return of the portfolio?
Find the variance of this portfolio and standard deviation?