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You have a P180 million portfolio invested in 3 stocks stocks J,Y,P. Your portfolio has a proportion of 45/o,25%,30% for stocks J,Y,P, respectively. There is

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You have a P180 million portfolio invested in 3 stocks stocks J,Y,P. Your portfolio has a proportion of 45/o,25%,30% for stocks J,Y,P, respectively. There is a 50% chance that economy remains in status quo thus the interest rate for the next 5 years will be the same. 12% annually. A 30% chance of decreasing economy which makes the interest rates to be more volatile (see Table 1), and 20% probability for improved economy in the next 5 years, thus increasing the investment rate (see Table 2). Calculate the portfolio performance: (a) Expected Rate of Return (b) Standard Deviation

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