Question
John has two investment opportunities. He can invest in The CBA Company or The CCIS Company. If he diversifies his investment by putting 50% of
John has two investment opportunities. He can invest in The CBA Company or The CCIS Company. If he diversifies his investment by putting 50% of his money into each company, what is the standard deviation of his portfolio?
| State of the Economy | Probability of the State | Expected Return CBA Company | Expected Return CCIS Company |
| Best | .50 | 25% | 0% |
| Worst | .50 | 0% | 25% |
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Options Futures And Other Derivatives
Authors: John C. Hull
8th Edition
0132164949, 9780132164948
