You have placed 30% of your money in investment A and 70% of your money in investment
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You have placed 30% of your money in investment A and 70% of your money in investment B. The annual returns on investments A and B depend on the state of the economy as shown in Table 5.35. Determine the mean and standard deviation of the annual return on your investments.
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TABLE 5.35 Stock Returns State Boom Bust Probability 0.40 0.60 A Return 0.30 -0.20 B Return 0.05 0.15
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Related Book For
Managerial Statistics
ISBN: 9780534389314
1st Edition
Authors: S. Christian Albright, Wayne L. Winston, Christopher Zappe
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