Consider the following probability distribution of stock A and B: State probability return on stock A Return on Stock B 1 0.1 10% 8% 2 0.2 13% 7% 3 0.2 12% 6% 4 0.3 14% 9% 5 0.2 15% 8% If you invest 40% of your money in A and 60% in B, what would be your portfolio's expected rate of return and standard deviation?

Answer rating: 100% (QA)

To calculate the portfolios expected rate of return and standard deviation we need to consider the w... View the full answer