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Question 18 (8 points) What is the portfolio variance if 60% is invested in stock K and 40% is invested in stock L? Return if
Question 18 (8 points)
What is the portfolio variance if 60% is invested in stock K and 40% is invested in stock L?
| Return if State Occurs | |||
| State of Economy | Probability of State of Economy | Stock K | Stock L |
| Boom | 15% | 21% | 11% |
| Normal | 85% | 7% | 9% |
Question 18 options:
| 0.00000 | |
| 0.00091 | |
| 0.00108 | |
| 0.00172 | |
| 0.00249 |
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
8th Edition
0077606779, 978-0697789945
