Question
1. Returns and Standard Deviations Consider the following information: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A
1.Returns and Standard Deviations Consider the following information:
| State of Economy | Probability of State of Economy | Rate of Return If State Occurs | ||
| Stock A | Stock B | Stock C | ||
| Boom | .10 | .35 | .45 | .27 |
| Good | .60 | .16 | .10 | .08 |
| Poor | .25 | ?.01 | ?.06 | ?.04 |
| Bust | .05 | ?.12 | ?.20 | ?.09 |
Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio?
What is the variance of this portfolio? The standard deviation?
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Satoshi S Vision The Art Of Bitcoin
Authors: Craig Wright ,Paul Democritou
1st Edition
1688735925, 978-1688735927
