Consider the following information: a. Your portfolio is invested 30 percent each in A and C and
Question:
Consider the following information:
a. Your portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio?
b. What is the variance of this portfolio? The standard deviation?
Transcribed Image Text:
State of Economy Boom Good Poor Bust Probability of State of Economy .15 .45 .30 .10 Rate of Return if State Occurs Stock A Stock B Stock C .35 .16 -.01 -.10 .40 .17 -.03 -.12 .28 .09 .01 -.09
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Related Book For
Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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