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Given the following information, what is the standard deviation of a portfolio which is invested 30 percent in Stock A, 20 percent in Stock B,
Given the following information, what is the standard deviation of a portfolio which is invested 30 percent in Stock A, 20 percent in Stock B, and 50 percent in Stock C?
| Returns | ||||||||||||
| State of | Probability of | |||||||||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | .10 | .22 | .08 | .18 | ||||||||
| Bust | .90 | .08 | .14 | .07 | ||||||||
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International Finance
Authors: Keith Pilbeam
4th Edition
0230362893, 978-0230362895
