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Your analysis of outcomes for sales and the associated rate of return on common stocks for companies X and Y are shown below. You intend
Your analysis of outcomes for sales and the associated rate of return on common stocks for companies X and Y are shown below. You intend to form a portfolio by allocating 55% of your funds in Company X and the remainder in Company Y. - The probability for declining Sales is 20% in which case ROR_x = -2.8% and RORy - 4 7%. - The probability for for Sales is 30% in which case ROR_x = 5.3% and RORy - 17.7% - The probability for using Sales is 50% in which case RORx = 14.8% and RORy - 26.4%. What is the expected return and standard deviation of portfolio returns? a. the expected return is 13 4% and the standard deviation is 7 5% b. the expected return is 11.6% and the standard deviation is 8.7% c. the expected return is 15.4% and the standard deviation is 7 5% d. the expected return is 15 4% and the standard deviation is 8 7% b. the expected return is 11.6% and the standard deviation is 7.5%
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