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Calculate the expected return and standard deviation of a portfolio comprised of $4,500 invested in stock S and $3,000 invested in stock T. State of
Calculate the expected return and standard deviation of a portfolio comprised of $4,500 invested in stock S and $3,000 invested in stock T.
State of Economy | Probability of State of Economy | Rate of Return if State Occurs (Stock S) | Rate of Return if State Occurs (Stock T) |
Boom | 10% | 12% | 4% |
Normal | 65% | 9% | 6% |
Recession | 25% | 2% | 9% |
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