Question
Consider the following information Rate of Return if state occurs Rate of return if state occurs Rate of Return if state occurs Probability of state
Consider the following information
| Rate of Return if state occurs | Rate of return if state occurs | Rate of Return if state occurs | ||
| Probability of state of Economy | Stock A | Stock B | Stock C | |
| Boom | .10 | .35 | .40 | .27 |
| Good | .60 | .16 | .17 | .08 |
| Poor | .25 | -.01 | -.03 | -.04 |
| Bust | .05 | -.12 | -.18 | -.09 |
Your Portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio? What is the expected return of the portfolio. What is the variance of this portfolio? The Standard Deviation?
Please Show work and your formula THANK YOUUUU
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Real Estate Finance Theory And Practice
Authors: Terrence M. Clauretie, G. Stacy Sirmans
5th Edition
0324305508, 9780324305500
