Question
You have a two stock portfolio with $700 in stock A and $300 in stock B. You believe the following probability distribution exists for your
You have a two stock portfolio with $700 in stock A and $300 in stock B. You believe the following probability distribution exists for your stocks. State of the Economy Probability of State Occurring Market Rate of Return of Stock A Market Rate of Return of Stock B Portfolio Return Boom 0.3 -10% 25% Normal 0.6 10% 15% Recession 0.1 20% 5% What are expected rate of return, risk, and CV of stock A?
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
