Question
Suppose you have a portfolio consisting of three stocksStock A, Stock B, and Stock C. The following amounts are invested in each stock: Stock A
Suppose you have a portfolio consisting of three stocksStock A, Stock B, and Stock C. The following amounts are invested in each stock: Stock A = $10,000; Stock B = $60,000; and Stock C = $30,000.
State Probability Stock A Stock B Stock C
Boom 0.50 17% 12% -28%
Normal ? 11% 3% -6%
Recession 0.15 -5% -8% 35%
- What is the standard deviation of Stock A?
- What is the standard deviation of stock B?
- What is the standard deviation of stock C?
- What is the portfolio standard deviation?
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Contemporary Issues In Development Finance
Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi
1st Edition
1138324329, 978-1138324329
