Question
Suppose you invest 30% of your money in A and 70% in B. Find the portfolio's expected rate of return and standard deviation using the
Suppose you invest 30% of your money in A and 70% in B. Find the portfolio's expected rate of return and standard deviation using the following probability distribution for A and B.
State of Probability Return on Return on
the economy of state Stock A Stock B
1 0.40 6% -8%
2 0.30 11% 15%
3 0.30 -7% 20%
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
