Question
. What is the expected return and standard deviation of a portfolio comprised of $4,000 in stock M and $6,000 in stock N and covariance
. What is the expected return and standard deviation of a portfolio comprised of $4,000 in stock M and $6,000 in stock N and covariance of M and N is 15%?
State of Economy Probability of State of Economy Returns if State Occurs
Stock M Stock N
Boom 10% 18% 10%
Normal 75% 7% 8%
Recession 15% -20% 6%
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Lending Investments And The Financial Crisis
Authors: Elena Beccalli, Federica Poli
1st Edition
1349564982, 978-1349564989
