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please help Below shows the expected returns for stock A and B in three possible states. State of the Normal Probabil 0.18 0.62 14% 8%
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Below shows the expected returns for stock A and B in three possible states. State of the Normal Probabil 0.18 0.62 14% 8% Recession 0.20 -10.00% 5.00% You have a portfolio which is comprised of 55 percent of stock A and 45 percent of stock B. Q: What is the expected rate of return on this portfolio? Q: What is the expected portfolio risk measured by standard deviation? 19
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