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Help me solve this 2 part question! You have the following information. Economy State Probability. Good 4 Neutral 23 Bad 137 Stock A 14% 0%
Help me solve this 2 part question!
You have the following information. Economy State Probability. Good 4 Neutral 23 Bad 137 Stock A 14% 0% -3% Stock B 10% 1% -9% Stock C 22% 14% -34% A) Suppose the risk-free rate is 3%. Calculate the variance of a portfolio that has $3,000 in Stock B, $4.000 in Stock C, and $5,000 in the risk-free asset. (Hint: round variance and standard deviation to six places after decimal) B) Suppose the risk-free rate is 3%. You own a portfolio with 50% of your money in the risk-free asset, 20% in Stock A, and 30% in Stock B Calculate the standard deviation of your portfolio. (Hintround variance and standard deviation to six places after decimal) Step by Step Solution
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