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Scenario Probability Rate of Return Stocks Bonds Recession 0.2 4% 15% Normal economy 0.7 16 11 Boom 0.1 25 3 Assume a portfolio with weights
| Scenario | Probability | Rate of Return | |
|---|---|---|---|
| Stocks | Bonds | ||
| Recession | 0.2 | 4% | 15% |
| Normal economy | 0.7 | 16 | 11 |
| Boom | 0.1 | 25 | 3 |
Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds.
- What are the expected rate of return and standard deviation of the portfolio?
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Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
