Question
Probability of Normal state is 80%, probability of recession is 20%. Return on Stock A is 11% in normal and 4% in recession. Return on
Probability of Normal state is 80%, probability of recession is 20%. Return on Stock A is 11% in normal and 4% in recession. Return on Stock B is 18% in normal and 6% in recession. What is the standard deviation of the returns on a portfolio that is 30% in Stock A and 70% in Stock B?
| 8.7% | ||
| 6.2%% | ||
| 17.6% | ||
| 4.2% | ||
| 5.8% |
What is the expected return on Stock A?
| 9.6% | ||
| 11.6% | ||
| 7.0%% | ||
| 11% | ||
| 4% |
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Options Trading For Beginners How To Generate Predictable Income And Make A Living Without Taking Big Risks Even If You Re A Complete Beginner
Authors: Greg Middleton
1st Edition
979-8866955046
