Question
The current value of the portfolio is 23 million. These are the scenarios for next year. Calculate expected return and std dev of return? Business
The current value of the portfolio is 23 million.
These are the scenarios for next year. Calculate expected return and std dev of return?
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| Conditions | Scenario, s | Probability, p | ($ million) | ($ million) |
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| High growth | 1 | 0,30 | 35 | 4,40 | =0.3*4,40 |
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| Normal growth | 2 | 0,45 | 27 | 4,00 |
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| No growth | 3 | 0,20 | 15 | 4,00 |
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| Recession | 4 | 0,05 | 8 | 2,00 |
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Risk Management And Financial Institutions
Authors: John C. Hull
3rd Edition
1118269039, 9781118269039
