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You decide to invest in a portfolio consisting of 11 percent Stock X, 53 percent Stock Y, and the remainder in Stock Z. Based on
You decide to invest in a portfolio consisting of 11 percent Stock X, 53 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio?
| State of Economy | Probability of State of Economy | Return if State Occurs | ||
|---|---|---|---|---|
| Stock X | Stock Y | Stock Z | ||
| Normal | .76 | 10.70% | 4.10% | 13.10% |
| Boom | .24 | 18.00% | 26.00% | 17.50% |
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Introduction To Estimating Economic Models
Authors: Atsushi Maki
1st Edition
0415589878, 978-0415589871
