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Calculate the expected portfolio returns and the standard deviation of the portfolio? Dont mind the answer i selected! QUESTION 7 There is a $30,000 portfolio
Calculate the expected portfolio returns and the standard deviation of the portfolio? Dont mind the answer i selected!
QUESTION 7 There is a $30,000 portfolio that consists of Stocks X, Y, and Z. You invest equally in the three stocks. State of Economy Probability of the state Returns if state occurs Stock X Stock Y Stock Z Boom 0.05 11% -9% 7% Normal 0.85 8% 7% -3% Bust ??? -5% 14% 9% Using the information above, calculate the expected portfolio returns and the standard deviation of the portfolio. Expected return = 4.15%, Standard deviation = 0.65% B. Expected return = 5.15%, Standard deviation 2.65% Expected return = 5.15%, Standard deviation = 1.65% D. Expected return = 6.15%, Standard deviation=3.65% Step by Step Solution
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