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What is the standard deviation of the returns on a $56,000 portfolio which consists of stocks C and D? Stock C is valued at $30,000.
What is the standard deviation of the returns on a $56,000 portfolio which consists of stocks C and D? Stock C is valued at $30,000.
| State of Economy | Probability | Return if State Occurs | |
|---|---|---|---|
| Stock C | Stock D | ||
| Boom | 40% | 31% | 28% |
| Normal | 20% | 17% | 14% |
| Recession | 40% | 0% | -1% |
Standard Deviation = %
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Optimization Methods In Finance
Authors: Gerard Cornuejols, Reha Tütüncü
1st Edition
0521861705, 978-0521861700
