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Managing Portfolio Topic - Variance and Standard Deviation for individual investment (single asset) There are 2 assets and 3 states of the economy State Of
Managing Portfolio
Topic - Variance and Standard Deviation for individual investment (single asset)
There are 2 assets and 3 states of the economy
State Of Economy | Probability of State of Economy | Expected return on Stock A if state occurs | Expected return on Stock B if state occurs |
Recession | 0.1 | -0.20 | 0.30 |
Normal | 0.6 | 0.10 | 0.20 |
Boom | 0.3 | 0.70 | 0.50 |
What are the expected returns and standard deviations for these 2 stocks?
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