Question
Compute the portfolio standard deviation. You have invested $2500 in each one of the four stocks. Probability of future state Stock A Stock B Stock
Compute the portfolio standard deviation. You have invested $2500 in each one of the four stocks.
|
| Probability of future state | Stock A | Stock B | Stock C | Stock D |
| Boom | 0.6 | 8% | 6% | -2% | 2.5% |
| Bust | 0.4 | -4% | -1% | 5% | 4% |
| a. | 1.28% | |
| b. | 2.56% | |
| c. | 3.46% | |
| d. | 4.24% |
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Routledge Handbook Of Financial Technology And Law
Authors: Iris Chiu, Gudula Deipenbrock
1st Edition
0367344149, 978-0367344146
