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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 Occurring | Rate of Return if State Occurs: | ||
---|---|---|---|---|
Stock A (%) | Stock B (%) | Stock C (%) | ||
Growth | .07 | 18.9 | 10.2 | 12.1 |
Stagnant | .93 | 7.5 | 8.5 | 9.3 |
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