The following table presents forecasted returns for three companies under various potential states of the economy:...

 

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The following table presents forecasted returns for three companies under various potential states of the economy: Stock X Stock Y 37.2% 27.3% 17.8% 6.0% -1.2% -4.0% -10.6% -6.0% 55% 30% State Above Average Average Below Average Recession Weight Probability 10% 45% 30% 15% Stock Z 41.0% 13.6% -7.0% -16.9% 15% What is the standard deviation on a portfolio of these three companies constructed according to the weights given in the table? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). The following table presents forecasted returns for three companies under various potential states of the economy: Stock X Stock Y 37.2% 27.3% 17.8% 6.0% -1.2% -4.0% -10.6% -6.0% 55% 30% State Above Average Average Below Average Recession Weight Probability 10% 45% 30% 15% Stock Z 41.0% 13.6% -7.0% -16.9% 15% What is the standard deviation on a portfolio of these three companies constructed according to the weights given in the table? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).

Answer rating: 100% (QA)

To calculate the standard deviation of the portfolio well use the formula for the portfolio standard ... View the full answer