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State prob. of state share M share N Growth 50% 10% 7% stable ??? 8% 6% Recession 35% -6% -2% You want to invest in
| State | prob. of state | share M | share N |
| Growth | 50% | 10% | 7% |
| stable | ??? | 8% | 6% |
| Recession | 35% | -6% | -2% |
You want to invest in 2 shares. The correlation coefficient is -0.4.
- Find the Expected Return for Share M and Share N.
- Find the Standard Deviation of returns on Share M and Share N.
- What is the expected Return of the portfolio invested 30% in Share M and remaining in Share N?
- What is the standard deviation of returns on this portfolio?
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How To Get Out Of Debt And Into Praise
Authors: James T. Meeks
1st Edition
0802429939,1575678314
