Question
State of Economy Probability of State of Economy Return of Stock A if State Occurs Return of Stock B if State Occurs Recession 0.30 -0.20
State of Economy | Probability of State of Economy | Return of Stock A if State Occurs | Return of Stock B if State Occurs |
Recession | 0.30 | -0.20 | 0.10 |
Normal | ? | 0.30 | 0.20 |
Boom | 0.15 | 0.40 | 0.30 |
What is the expected return for Stock A?
What is the standard deviation for Stock A?
Suppose you have $50,000 total. If you put $20,000 in Stock A and the remainder in Stock B, what are the portfolio returns in each state?
Suppose you have $50,000 total. If you put $20,000 in Stock A and the remainder in Stock B, what will be the expected return of your portfolio?
Suppose you have $50,000 total. If you put $20,000 in Stock A and the remainder in Stock B, what will be the standard deviation of your portfolio?
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