Question
Portfolio returns and deviations. Consider the following information on a portfolio of three stocks: State of Probability of Stock A Rate of return Stock B
Portfolio returns and deviations. Consider the following information on a portfolio of three stocks:
State of Probability of Stock A Rate of return Stock B ROR Stock C ROR
Economy State of Economy
Boom .25 .02 .32 .60
Normal .60 .10 .12 .20
Bust .15 .16 -.11 -.35
a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio
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International Finance
Authors: Keith Pilbeam
3rd Edition
1403948372, 978-1403948373
