Question
Consider the following information on returns and probabilities: Invest 1/2 of your money in Asset A and 1/2 in Asset B. State Probability A B
Consider the following information on returns and probabilities:
Invest 1/2 of your money in Asset A and 1/2 in Asset B.
State Probability A B
Boom .25 12% 4%
Bust .75 6% 18%
What is the standard deviation of the return for Stock B in%?
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
