Question
Use the following information: State of the Economy Probability Stock P Stock Q Portfolio Boom .7 32% 18% ? Recession .3 -14 -5% ? a.
Use the following information:
| State of the Economy | Probability | Stock P | Stock Q | Portfolio |
| Boom | .7 | 32% | 18% | ? |
| Recession | .3 | -14 | -5% | ? |
a. What is the expected return of Stock P?
b. What is the expected return of Stock Q?
c. What is the expected return of a portfolio 50 percent invested in Stock P and the remainder in Stock Q?
d. What is the standard deviation of a portfolio 50 percent invested in Stock P and the remainder in Stock Q?
NO EXCEL, only work.
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Social Finance Shadow Banking During The Global Financial Crisis
Authors: Neil Shenai
1st Edition
3030082318, 978-3030082314
