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State of the economy Probability Return on A(%) Return on B(%) Bear 0.4 3 6.5 Bull 0.6 15 6.5 Calculate expected return and standard deviation
State of the economy | Probability | Return on A(%) | Return on B(%) |
Bear | 0.4 | 3 | 6.5 |
Bull | 0.6 | 15 | 6.5 |
Calculate expected return and standard deviation of two securities.
Suppose Miss Maple invested $2,500 in security A and $3,500 in security B. Calculate the expected return and standard deviation of her portfolio.
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