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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom
| Consider the following information: |
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs | ||
|---|---|---|---|---|
| Stock A | Stock B | Stock C | ||
| Boom | .20 | .31 | .41 | .32 |
| Good | .50 | .18 | .12 | .11 |
| Poor | .25 | .04 | .07 | .05 |
| Bust | .05 | .15 | .27 | .08 |
| a. | Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? |
What is the variance of this portfolio?
| What is the standard deviation? |
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Handbook Of Experimental Finance
Authors: Sascha Füllbrunn, Ernan Haruvy
1st Edition
1800372329, 978-1800372320
