Question
The table below represents stocks and their expected returns under each state of the economy. The portfolio's weights are as follows 50% is invested
The table below represents stocks and their expected returns under each state of the economy. The portfolio's weights are as follows 50% is invested in grapefruit, 25% in orange, and 25% in lemon. State of Probability of state of economy economy Boom Bust 0.30 0.70 Rate of Return if state of economy occurs (%) Grapefruit 30 10 What is the standard deviation for the overall portfolio? Orange 40 0 Lemon 50 20
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
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