Question
Given the information below for #6-#7. You have $1000 invested in stocks and 600 in bonds in your portfolio Scenario Prob Stock bond recession .40
Given the information below for #6-#7. You have $1000 invested in stocks and 600 in bonds in your portfolio
| Scenario | Prob | Stock | bond |
| recession | .40 | -7% | 14% |
| normal | .30 | 13% | 9% |
| boom | .30 | 21% | 6% |
Expected return of portfolio?
Total risk of portfolio?
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ISE Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders Professor, Marcia Millon Cornett, Otgo Erhemjamts
10th International Edition
1260571475, 9781260571479
