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State Probability Return on A Return on B Boom .6 0.15 0.08 Bust .4 0.05 0.20 What is the standard deviation of a portfolio with
| State | Probability | Return on A | Return on B |
| Boom | .6 | 0.15 | 0.08 |
| Bust | .4 | 0.05 | 0.20 |
What is the standard deviation of a portfolio with one-quarter of the funds in A?
Multiple Choice
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1.03%
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0.89%
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3.2%
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0.65%
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0.08%
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Applied International Finance
Authors: Thomas J O'Brien
1st Edition
1606497340, 9781606497340
