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There are three economy situations and two stocks. Information is as follows. Assume you have % 1 0 , 0 0 0 and allocate $
There are three economy situations and two stocks. Information is as follows. Assume you have and allocate $ on stock A
Economy
Stock A
Stock B
Booming
Neutral
Recession
Answer format: keep digit after decimal point in For example,
a What are the expected returns for both stock A and B respectively?
b What is the standard deviation risk for stock A
c What is the expected portfolio?
d What is the portfolio return when economy is booming?
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