Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What is the standard deviation of the returns on a $30,000 portfolio that consists of Stocks S and T? Stock S is valued at $18,000.
What is the standard deviation of the returns on a $30,000 portfolio that consists of Stocks S and T? Stock S is valued at $18,000.
State of Economy | Probability of State of Economy | Rate of Return if State Occurs | |||||
Stock S | Stock T | ||||||
Boom | .05 | .11 | .09 | ||||
Normal | .85 | .08 | .07 | ||||
Bust | .10 | .05 | .04 |
A) | 2.07 percent | |
B) | 3.36 percent | |
C) | 2.49 percent | |
D) | 3.63 percent | |
E) | 2.80 percent |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started