Question
Must show work Consider the following information on two stocks: State of the Economy Probability of State of Economy Stock 1 Rate of Return Stock
Must show work Consider the following information on two stocks:
| State of the Economy | Probability of State of Economy | Stock 1 Rate of Return | Stock 2 Rate of Return |
| Boom | .35 | .12 | -.28 |
| Normal | .5 | .4 | .09 |
| Bust | .15 | .53 | .48 |
If you have a portfolio that is made up of 50% of stock 1 and 50% of stock 2, what is the portfolio expected return, variance and standard deviation?
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Machine Learning In Finance From Theory To Practice
Authors: Matthew F Dixon, Igor Halperin, Paul Bilokon
1st Edition
3030410676, 978-3030410674
