Question
A) Calculate the variance of stock B. (Enter percentages as decimals and round to 4 decimals) B) Calculate the covariance(A,B). (Enter percentages as decimals and
A) Calculate the variance of stock B. (Enter percentages as decimals and round to 4 decimals)
B) Calculate the covariance(A,B). (Enter percentages as decimals and round to 4 decimals)
C) Suppose you invest $25,000 into stock A, and $15,000 into stock B.Calculate the variance of the portfolio. (Enter percentages as decimals and round to 4 decimals)
D) Suppose you invest $25,000 into stock A, and $15,000 into stock B.Calculate the standard deviationof the portfolio. (Enter percentages as decimals and round to 4 decimals)
Consider the following information on two stocks:
State Prob(State) Stock A Stock B
Boom 20% 0.25 0.02
Normal 40% 0.11 0.15
Bust 40% -0.09 0.04
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Personal Finance
Authors: E. Thomas Garman, Raymond E. Forgue
13th edition
1337099759, 978-1337516440, 1337516449, 978-1337099752
