Question
Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom
Consider the following information on Stocks A, B, C and their returns (in decimals) in each state:
| State | Prob. of State | A | B | C |
| Boom | 20% | 0.26 | 0.18 | 0.17 |
| Good | 45% | 0.12 | 0.08 | 0.09 |
| Poor | 25% | 0.04 | 0.02 | 0.03 |
| Bust | 10% | -0.1 | -0.04 | -0.01 |
If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent?
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Wealth By The Acre How To Buy Own And Invest In Vacant Land
Authors: Yaswanth Nukasani ,Noah Boren
1st Edition
979-8351951614
