Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

There are two assets and three states of the economy: Suppose you have $ 2 0 , 0 0 0 total. If you put $

There are two assets and three states of the economy: Suppose you have $20,000 total. If you put $15,000 in Stock A and the remainder in
Stock B, what will be the standard deviation of your portfolio? (Keep 2 post decimal
digits in your final answer)
\table[[State of Economy,\table[[Probability of],[State of Economy]],Rate of Return If State Occurs],[Stock A,Stock B,],[Recession,.30,-.20,.10],[Normal,.50,.40,.30],[Boom,.20,.80,.50]]
Suppose you have $20,000 total. If you put $15,000 in Stock A and the remainder in Stock B, what will be the standard deviation of your portfolio? (Keep 2 post decimal digits in your final answer)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

American Public School Finance

Authors: William A. Owings, Leslie S. Kaplan

3rd Edition

113849996X, 978-1138499966

More Books

Students also viewed these Finance questions

Question

What is meant by the term flow-through entity? Give some examples.

Answered: 1 week ago