Question
Problem 11-11 Portfolio Returns and Volatilities (LO2, CFA5) Given the following information, calculate the expected return and standard deviation for a portfolio that has 32
Problem 11-11 Portfolio Returns and Volatilities (LO2, CFA5)
Given the following information, calculate the expected return and standard deviation for a portfolio that has 32 percent invested in Stock A, 31 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
| Returns | ||||||||||||
| State of Economy | Probability of State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | .40 | 17 | % | 20 | % | 23 | % | |||||
| Bust | .60 | 18 | 0 | 18 | ||||||||
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Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
