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By using the excel spreadsheet , compute the expected return and standard deviation of the returns on a portfolio that is invested in stocks A,
By using the excel spreadsheet, compute the expected return and standard deviation of the returns on a portfolio that is invested in stocks A, B, and C? The total amount you invested in the portfolio is $150,000, where $33,500 of this amount of money is invested in stock A and $45,000 is invested in stock B, the rest were invested in stock C.
State of Economy | Probability of state of Economy | Return if state Occurs | ||
Stock A | Stock B | Stock C | ||
Boom | 20% | 17% | 6% | 25% |
Normal | 45% | 8% | 10% | 15% |
Recession | ??? | 1% | 12% | -19% |
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