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Your portfolio is invested 20 percent each in A and C, and 60 percent in B. What is the standard deviation of the portfolio? Rate
Your portfolio is invested 20 percent each in A and C, and 60 percent in B. What is the standard deviation of the portfolio?
| Rate of Return if State Occurs | ||||
| State of Economy | Probability of State of Economy | Stock A | Stock B | Stock C |
| Boom | .15 | .37 | .47 | .27 |
| Good | .45 | .22 | .18 | .11 |
| Poor | .35 | -.18 | -.22 | -.08 |
| Bust | .05 | -.04 | -.07 | -.05 |
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29.78%
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21.36%
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25.63%
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10.96%
-
17.26%
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International Financial Management
Authors: Jeff Madura, Roland Fox
5th Edition
1473770505, 978-1473770508
