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If you invest the same amount in stocks A and B, what is the standard deviation of your portfolio? Market condition Probability Stock A Stock
If you invest the same amount in stocks A and B, what is the standard deviation of your portfolio?
| Market condition | Probability | Stock A | Stock B |
| Boom | .3 | 24% | 18% |
| Normal | .4 | 15% | 13% |
| Recession | .3 | 5% | 8% |
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The Handbook Of Financing Growth
Authors: Kenneth H. Marks, Larry E. Robbins, Gonzalo Fernandez, John P. Funkhouser, D. L. Williams
2nd Edition
