Question
Consider the following information on returns and probabilities: Invest 0 of your money in Asset A and 100% in Asset B. State Probability A B
- Consider the following information on returns and probabilities:
Invest 0 of your money in Asset A and 100% in Asset B.
State Probability A B
Boom .25 12% 4%
Bust .75 6% 18%
what is the standard deviation of the return on the portfolio?
| a. 1.7 | ||
| b. 2.6 | ||
| c. 3.9 | ||
| d. 4.6 | ||
| e. 5.6 | ||
| f. 6.9 | ||
| g. 7.5 | ||
| h. 9.0 | ||
| i. 8.2 | ||
| j. 11 |
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Financial Data Analytics Theory And Application
Authors: Sinem Derindere Köseo?lu
1st Edition
303083798X,3030837998
