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You decide to invest in a portfolio consisting of 25 percent Stock X and 75 percent Stock Y. State of economy Normal Boom O 5.69%
You decide to invest in a portfolio consisting of 25 percent Stock X and 75 percent Stock Y. State of economy Normal Boom O 5.69% O 4.57% O 1.36% O 3.42% Probability of state of economy O2.31% 80% 20% What is the standard deviation of the returns on the portfolio? Return if state occurs Stock X 8.4% 12.7% Stock Y 10.5% 13.6%
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