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Your portfolio is invested 30 percent each in stocks A and C, and 40 percent in stock B. What is the standard deviation of your
Your portfolio is invested 30 percent each in stocks A and C, and 40 percent in stock B. What is the standard deviation of your portfolio given the following information? Give your answer in decimal form out to four places. (0.4444) |
State of Economy | Probability of State of Economy | Rate of Return if State Occurs | ||
Stock A | Stock B | Stock C | ||
Boom | 0.25 | 0.25 | 0.25 | 0.45 |
Good | 0.50 | 0.10 | 0.13 | 0.11 |
Bust | 0.25 | -0.14 | -0.09 | -0.19 |
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