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There are only two possible states of the economy. State 1 has a 67% chance of occurring. In State 1, Asset A returns 6.50% and
There are only two possible states of the economy. State 1 has a 67% chance of occurring. In State 1, Asset A returns 6.50% and Asset B returns 9.50%. In State 2, Asset A returns -3.60% and Asset B returns -6.60%. A portfolio of just these two assets is invested 43% in Asset A (with Asset B comprising the remainder w/o any negative weights). What is the standard deviation of the portfolio's returns?
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