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Probability Stock A Stock B Boom 1/3 12.5% -10.45% Normal 1/3 15.8% 4.52% Recession 1/3 -2.5% 3.85% Average Return 8.6% -0.6933% Standard Deviation () 7.9637%
|
Probability |
Stock A
|
Stock B |
Boom
|
1/3 |
12.5% |
-10.45% |
Normal |
1/3 |
15.8% |
4.52% |
Recession |
1/3 |
-2.5% |
3.85% |
Average Return
|
|
8.6% |
-0.6933% |
Standard Deviation () |
|
7.9637% |
6.9044% |
What is the portfolio return if you invest equally in Stocks A and B?
8.7811% | |
9.2512% | |
8.3510% | |
3.9534% |
What is the correlation between Stocks A and B? Using BA II Plus
-0.3089 | |
-0.3567 | |
0.3088 | |
0.3567 |
What is the portfolio standard deviation if you invest equally in Stocks A and B?
19.28% | |
4.39% | |
5.67% | |
8.95% |
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