Question
What is expected rate of return on this portfolio,5 points) What is the standard deviation of this portfolio? Tyler has a portfolio comprised of $8,000
points) What is the standard deviation of this portfolio?
Tyler has a portfolio comprised of $8,000 of stock A and $12,000 of stock B. Portfolio Table State of Economy Prob. of State of Economy Normal 0.84 Recession 0.16 Rate of Return if State Occurs Stock A 11% -6% Stock B 15% -19%
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Answer To calculate the expected rate of return on the portfolio we first need to find the expected return for each stock and then calculate the weigh...Get Instant Access to Expert-Tailored Solutions
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Intermediate Algebra
Authors: Margaret Lial, John Hornsby, Terry McGinnis
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0134895983, 978-0134895987
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