Question
Consider the following information on two stocks: P(State) Stock A Stock B Boom 50% 0.25 0.15 Normal 20% 0.12 -0.06 Bust 30% -0.05 0.10 Suppose
Consider the following information on two stocks:
| P(State) | Stock A | Stock B | |
| Boom | 50% | 0.25 | 0.15 |
| Normal | 20% | 0.12 | -0.06 |
| Bust | 30% | -0.05 | 0.10 |
Suppose you invest $40,000 into stock A, and $60,000 into stock B. Calculate the standard deviation of the portfolio. (Enter percentages as decimals and round to 4 decimals)
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The Handbook Of Sentiment Analysis In Finance
Authors: Gautam Mitra, Xiang Yu
1st Edition
1910571571, 978-1910571576
