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Question 4 (1 point) What is the standard deviation for asset B? Question 5 (1 point) What is the expected return of a portfolio that
Question 4 (1 point) What is the standard deviation for asset B? Question 5 (1 point) What is the expected return of a portfolio that has 70% in Asset A and 30% in Asset B? Question 6 (1 point) The standard deviation of the 70% A and 30% B portfolio most likely should OA) Equal 70% X A's standard deviation plus 30% x B's standard deviation. O B) Be greater than 70% X A's standard deviation plus 30% x B's standard deviation. O C) Be less than 70% X A's standard deviation plus 30% x B's standard deviation. Use the following table to answer questions 1 - 6: State of Economy Boom Normal Recession Probability Asset A of State of Rate of Economy Return 0.3 0.13 0.5 0.2 -0.05 Asset B Rate of Return 0.08 0.05 -0.01 0.06
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