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% | 0.31 | 0.22 | 0.17 |
| Good | 45% | 0.15 | 0.1 | 0.07 |
| Poor | 25% | 0.01 | 0 | 0.02 |
| Bust | 10% | -0.09 | -0.05 | -0.02 |
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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Integral Green Zimbabwe An African Phoenix Rising
Authors: Elizabeth Mamukwa , Ronnie Lessem , Alexander Schieffer
1st Edition
1472438191, 1472438205, 9781472438201
