Question
If you invested 60% in ABC, 30% in XYZ and the rest in cash, what would be the standard deviation of the portfolio? Economy Probability
If you invested 60% in ABC, 30% in XYZ and the rest in cash, what would be the standard deviation of the portfolio?
| Economy | Probability | Std. Dev ABC | Std. Dev XYZ |
| Depression | .20 | 0.140 | 0.050 |
| Recession | .15 | 0.005 | 0.030 |
| Normal | .35 | 0.014 | 0.140 |
| Boom | .30 | 0.100 | 0.007 |
| 1 |
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Finance And Financial Markets
Authors: Keith Pilbeam
3rd Edition
023023321X, 978-0230233218
