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Scenario Probability Rate of Return Recession 0.19 -6% Normal Economy 0.46 6% Boom 0.35 10% Expected return=5.12 Standard Dev= 5.67 Suppose the investor decides to
| Scenario | Probability | Rate of Return |
| Recession | 0.19 | -6% |
| Normal Economy | 0.46 | 6% |
| Boom | 0.35 | 10% |
Expected return=5.12
Standard Dev= 5.67
Suppose the investor decides to invest an additional $3,000 in a treasury bill yielding 1.5%. What will be the expected return and standard deviation of this portfolio.
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Financial Intelligence
Authors: Income Mastery
1st Edition
1647773210, 978-1647773212
