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Consider the following information. a) Your portfolio is invested 25% each in Stock A and C, and 50% in Stock B. What is the expected
Consider the following information.
a) Your portfolio is invested 25% each in Stock A and C, and 50% in Stock B. What is the expected return of the portfolio?
b)What is the variance of this portfolio? What is the standard deviation?
I'd like to learn how to do this in excel please.
ROR if State Occurs | |||||
State of Economy | Probability | A | B | C | |
Boom | 0.15 | 0.35 | 0.45 | 0.33 | |
Good | 0.5 | 0.12 | 0.1 | 0.17 | |
Poor | 0.25 | 0.01 | 0.02 | -0.05 | |
Bust | 0.1 | -0.11 | -0.25 | -.9 |
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