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Your entire stock portfolio contains shares of AMC (20%), Bayer (47%), and CarGurus. Using the information in the table below, the variance of your portfolio
Your entire stock portfolio contains shares of AMC (20%), Bayer (47%), and CarGurus. Using the information in the table below, the variance of your portfolio is ___________.
State of Economy | Probability of State | Return if State Occurs | ||||||||||
of Economy | AMC | Bayer | CarGurus | |||||||||
Recession | .124 | 11.10% | 4.50% | 13.50% | ||||||||
Normal | .685 | 10.40% | 10.86% | 17.90% | ||||||||
Boom | .191 | 21.75% | 25.51% | 30.21% |
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