Question
Based on the following information, what is the variance of a portfolio invested 22 percent in each A and C and 56 percent in B?
Based on the following information, what is the variance of a portfolio invested 22 percent in each A and C and 56 percent in B? Round intermediate computation to six decimal places. Round your final answer to the nearest ten thousandth of a percent.
STATE OF ECONOMY. PROBABILITY OF STATE ECONOMY RATE OF RETURN IF STATE OCCURS
STOCK A. STOCK B. STOCK C
Boom 0.44 0.03 0.12 0.06
Bust 0.56 -0.12 -0.18 -0.12
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Multinational Finance Evaluating Opportunities Costs and Risks of Operations
Authors: Kirt C. Butler
5th edition
1118270126, 978-1118285169, 1118285166, 978-1-119-2034, 978-1118270127
