Question
Your portfolio is invested 25 percent each in Stocks A and C, and 50 percent in Stock B. What is the standard deviation of your
Your portfolio is invested 25 percent each in Stocks A and C, and 50 percent in Stock B. What is the standard deviation of your portfolio given the following information? Show calculator inputs or calculations.
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
| ||||||||
|
|
| Stock A | Stock B | Stock C |
| ||||||
| Boom | .07 |
| .28 |
|
| .14 |
|
| .11 |
| |
| Good | .55 |
| .19 |
|
| .12 |
|
| .09 |
| |
| Poor | .36 | .21 |
|
| .07 |
|
| .06 |
| ||
| Bust | .02 | .65 |
|
| .03 |
| .03 |
| |||
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Financial Analysis And Modeling Using Excel And VBA
Authors: Chandan Sengupta
2nd Edition
047027560X, 978-0470275603
