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Consider the following probability distribution for stocks A and B: State of Economy Probability of State of Economy Return on Security A Return on Security
Consider the following probability distribution for stocks A and B:
State of Economy Probability of State of Economy Return on Security A Return on Security B
Boom 0.10 0.10 0.08
Strong Growth 0.20 0.13 0.07
Normal Growth 0.20 0.12 0.06
Weak Growth 0.30 0.14 0.09
Bust 0.20 0.15 0.08
What is the expected return and standard deviation of an equal weight portfolio?
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Sport Finance
Authors: Gil Fried, Steven Shapiro, Timothy D. Deschriver
2nd Edition
0736067701, 978-0736067706
