Question
Consider the following probability distribution of stock A and B: State probability return on stock A Return on Stock B 1 0.1 10% 8% 2
Consider the following probability distribution of stock A and B: State probability return on stock A Return on Stock B 1 0.1 10% 8% 2 0.2 13% 7% 3 0.2 12% 6% 4 0.3 14% 9% 5 0.2 15% 8% If you invest 40% of your money in A and 60% in B, what would be your portfolio's expected rate of return and standard deviation?
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
978-1133525097, 1133525091, 1111827028, 978-1133110316, 1133110312, 978-1111827021
