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Consider this: You have a portfolio consisting of three key stocks: $80,000 is invested in AAPL; $50,000 is invested in BBBY; $70,000 is invested in
Consider this: You have a portfolio consisting of three key stocks:
$80,000 is invested in AAPL;
$50,000 is invested in BBBY;
$70,000 is invested in CCL:
State | Prob. | AAPL | BBBY | CCL |
---|---|---|---|---|
boom | 0.35 | 1% | 15% | -13% |
normal | ????? | 6% | 6% | -2% |
recession | 0.35 | 15% | -30% | 8% |
What is the Standard Deviation of BBBY?
And what is the portfolio's standard deviation?
Please show work in excel with formulas if possible.
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