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Consider the following information on returns and probabilities: Invest 100% of your money in Asset A and 0% in Asset B. State Probability A B
Consider the following information on returns and probabilities:
Invest 100% of your money in Asset A and 0% in Asset B.
State Probability A B
Boom .25 12% 4%
Bust .75 6% 18%
what is the standard deviation of the return on Stock A in %?
a. 1.7 | ||
b. 2.6 | ||
c. 3.9 | ||
d. 4.6 | ||
e. 5.5 | ||
f. 6.9 | ||
g. 7.5 | ||
h. 9.0 | ||
i. 8.2 | ||
j. 11 |
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