Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation
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Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are as shown in the file P12_37.xlsx. The correlations between the annual returns on the four stocks are also shown in this file.
a. What is the probability that your portfolio’s annual return will exceed 20%?
b. What is the probability that your portfolio will lose money during the course of a year?
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Related Book For
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright
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