Question
Consider the following two stocks. Probabilities Stock A Stock B Recession p1= 38% -7% 9% Normal p2=30% 7% -8% Boom p3=32% 12% 23% The portfolio
Consider the following two stocks.
Probabilities Stock A Stock B
Recession p1= 38% -7% 9%
Normal p2=30% 7% -8%
Boom p3=32% 12% 23%
The portfolio weights for stocks "A" and "B" are 0.2 and 0.8, respectively.
What arethe expected returns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES.
E (Ra)= 3.28
E (rb)=8.38
Need help with last couple sections. There is multiple questions within this question.
Here it is
Using the correct answers from the previous question, what arethe standard deviations of stocks "A" and "B"? Enter your answers as a percentage.Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES.
SDa=
SDb=
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