Question
You plan to purchase Stocks J, K, and L and have the following information: State of Economy Probability J K L Recession 0.45 -6.80% 14.00%
You plan to purchase Stocks J, K, and L and have the following information:
| State of Economy | Probability | J | K | L |
| Recession | 0.45 | -6.80% | 14.00% | 5.00% |
| Normal | 0.25 | 13.30% | 5.20% | 11.00% |
| Boom | 0.30 | 27.00% | -11.60% | 18.00% |
| Stock Price | N/A | $32.50 | $10.85 | $82.50 |
If you buy 250 shares of J, 2000 shares of K, and 800 shares of L, compute the expected return (in%) and standard deviation (in %) of your portfolio.
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Foundations Of Financial Management
Authors: Stanley Block
8th Canadian Edition
0070965447, 9780070965447
