Question
You have a portfolio which is comprised of 55 percent of stock A and 45 percent of stock B. State of Economy Probability A B
You have a portfolio which is comprised of 55 percent of stock A and 45 percent of stock B.
| State of Economy | Probability | A | B |
| Boom | 0.20 | 22% | 19% |
| Normal | 0.70 | 12% | 10% |
| Recession | 0.10 | -26% | -4% |
a) What is the expected return of the portfolio? Round percentage to two decimal places. (4 marks)
b) What is the standard deviation of the portfolio? Round percentage to two decimal places.
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The Complete Guide To Property Finance
Authors: Richard W J Brown
1st Edition
1739832027, 978-1739832025
