Question
State Prob(State) Stock A Stock B Boom 15% 0.22 -0.12 Normal 50% 0.07 0.15 Bust 35% -0.09 0.06 Suppose you invest $20,000 into stock A,
State Prob(State) Stock A Stock B
Boom 15% 0.22 -0.12
Normal 50% 0.07 0.15
Bust 35% -0.09 0.06
Suppose you invest $20,000 into stock A, and $15,000 into stock B:
1.Calculate the weight of A in the portfolio. (Enter percentages as decimals and round to 4 decimals)
2.Calculate the expected return of the portfolio. (Enter percentages as decimals and round to 4 decimals)
3.Calculate the variance of the portfolio. (Enter percentages as decimals and round to 4 decimals)
4.Calculate the standard deviationof the portfolio. (Enter percentages as decimals and round to 4 decimals)
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
