Question
Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent
Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, and the remainder in stock C?
| State of Economy | Probability of State of Economy | Stock A | Stock B | Stock C |
| Normal | 0.65 | 14.30% | 16.70% | 18.20% |
| Recession | 0.35 | -9.80% | 5.40% | -26.90% |
| A | 12.72% | |||
| B | 14.07% | |||
| C | 1.41% | |||
| D | 7.41% | |||
| E | 11.86% |
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Financial Management For Nurse Managers Merging The Heart With The Dollar Merging The Heart With The Dollar
Authors: J. Michael Leger, Janne Dunham-Taylor
4th Edition
1284127257, 978-1284127256
