Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the standard deviation of the returns on a $44,000 portfolio which consists of stocks C and D? Stock C is valued at $24,000.

What is the standard deviation of the returns on a $44,000 portfolio which consists of stocks C and D? Stock C is valued at $24,000.

State of Economy Probability Return if State Occurs
Stock C Stock D
Boom 30% 19% 10%
Normal 50% 5% 8%
Recession 20% 0% 5%

Standard Deviation = %

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_2

Step: 3

blur-text-image_3

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 Economics And Finance Of Professional Team Sports

Authors: Daniel Plumley, Rob Wilson

1st Edition

0367655667, 978-0367655662

More Books

Students also viewed these Finance questions

Question

4. When is it appropriate to show grace toward others?

Answered: 1 week ago