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Consider the following Returns Scenario Probability Airline Silver Portfolio (80% airline, 20% silver) Recession -10 +25 Slow Go +2 +5 Normal +6 +3 Boom +25
Consider the following
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| Scenario |
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| Airline | Silver |
| Portfolio (80% airline, 20% silver) | |||
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| Recession |
| -10 | +25 |
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| Slow Go |
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| +2 | +5 |
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| Normal |
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| +6 | +3 |
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| Boom |
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| +25 | -15 |
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| FYI: Expected Return for Individual Stocks: |
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| Airline |
| (-10+2+6+20)/4 = 5.75% |
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| Silver |
| (+25+5+3-15)/4 = 4.5% |
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Show the expected return, variance and standard deviation of an 80% airline, 20% silver portfolio.
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