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You decide to invest in a portfolio consisting of 28 percent Stock A, 48 percent Stock B, and the remainder in Stock C. Based on
You decide to invest in a portfolio consisting of 28 percent Stock A, 48 percent Stock B, and the remainder in Stock C. Based on the following information, what is the standard deviation of your portfolio? Please show all your work, including intermediary steps. State of Economy Return if State Occurs Probability of State of Economy .115 Stock A Stock B Stock C Recession -10.20% - 3.60% - 12.60% Normal .667 9.50% 10.68% 17.00% Boom .218 21.57% 25.15% 29.85%
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