Question
Question 4 (20 marks) You are now making $250,000 annual salary and are looking to begin investing your money. You are looking to start investing
Question 4 (20 marks) You are now making $250,000 annual salary and are looking to begin investing your money. You are looking to start investing $20,000 in the stock markets. After careful analysis you decide to invest $6,000 in Apple and $14,000 in Facebook stock. You further analyzed the state of the economy and put together the table below. State of Economy Probability Apple return based on Economy Facebook return based on Economy Recession 10% -20% 30% Normal 60% 10% 20% Boom 30% 70% 50% Based on your analysis what is the expected return, and standard deviation of your portfolio?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started