Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the standard deviation of the returns on a $30,000 portfolio that consists of stocks A and stock B?. Stock A is valued at

image text in transcribed
What is the standard deviation of the returns on a $30,000 portfolio that consists of stocks A and stock B?. Stock A is valued at $ 21,000. Rate of Return if State Rate of Return if State Occurs Occurs Stock of Economy Probability of State of Economy Stock A Stock B Boom 5 % Normal 8596 Recession 10 96 2.07 Percent 11 96 8 % -596 5 % 6% 8% 2.61 Percent 3.36 Percent 3.49 Percent

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

The Audit Committee Handbook

Authors: Louis Braiotta Jr.

4th Edition

0470226420, 978-0470226421

More Books

Students also viewed these Accounting questions

Question

Define Administration?

Answered: 1 week ago

Question

Define Decision making

Answered: 1 week ago