Question
Given the following information for a portfoilio of 60 % in stock and 40% in bonds calculate: 1) The expected return of the portfolio 2)
Given the following information for a portfoilio of 60 % in stock and 40% in bonds calculate:
1) The expected return of the portfolio
2) The risk of the portfolio Scenario
| Scenario | Prob. | Stock Fund ROR | Bond Fund ROR |
| Severe Recession | 0.10 | -25 | -10 |
| Mild Recession | 0.20 | -8 | 1 |
| Normal Growth | 0.45 | 17 | 5 |
| Boom | 0.25 | 34 | 8 |
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Housing Policy And Finance
Authors: John Black, David Stafford
1st Edition
0415004195, 978-0415004190
