Question
Calculate the expected return, variance, and standard deviations for investments in either stock A or stock B, or an equally weighted portfolio including both stocks
Calculate the expected return, variance, and standard deviations for investments in either stock A or stock B, or an equally weighted portfolio including both stocks A and B.
| Scenario | Probability | Return on A | Return on B |
| Recession | 35% | -4% | 9% |
| Normal | 40% | 8% | 4% |
| Boom | 25% | 20% | -4% |
Please show what formulas are used
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Financial Management In Construction Contracting
Authors: Andrew Ross, Peter Williams
1st Edition
1405125063, 9781405125062
