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You want to invest your money on three stocks of Toyota, Boeing, and Microsoft by constructing your own portfolio. 30% of your investment is on
You want to invest your money on three stocks of Toyota, Boeing, and Microsoft by constructing your own portfolio. 30% of your investment is on Toyota, 30% on Boeing and 40% on Microsoft. According to your investigation on stocks and economic condition, expected return on each stock by economic state of nature is as follows: PROBABILITY TOYOTA RETURN BOEING RETURN MICROSOFT RETURN STATE OF ECONOMY BOOM ABOVE NORMAL NORMAL 0.5 18% 2% 19% 0.2 6% 6% 13% 0.3 1% 12% 10% The expected rate of return for this portfolio is The standard deviation for this portfolio is Round up your answer to TWO decimals in %
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