Question
You have a portfolio which is comprised of 72 percent of stock A and 28 percent of stock B. What is the variance of this
You have a portfolio which is comprised of 72 percent of stock A and 28 percent of stock B. What is the variance of this portfolio?
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs | |
|
Normal |
.65 | Stock A | Stock B |
|
13% |
22% | ||
|
Recession |
.35 |
-12% |
-46% |
| .00909 | ||
| .02038 | ||
| .02681 | ||
| .03121 | ||
| .04156 |
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The Routledge Handbook Of Responsible Investment
Authors: Tessa Hebb, James Hawley, Andreas Hoepner, Agnes Neher, David Wood
1st Edition
0415624517, 978-0415624510
