You have a portfolio which is comprised of 40% of Stock A and 60% of Stock B.
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Question:
You have a portfolio which is comprised of 40% of Stock A and 60% of Stock B.
What is the portfolio standard deviation?
State of the Economy Probability E(RA) E(RB)
40% 60%
Boom .10 20 % 14 %
Normal .75 11 % 9 %
Recession .15 −20 % −5 %
Multiple Choice
7.95%
4.00%
6.82%
5.56%
6.06%
Related Book For
Fundamentals of Physics
ISBN: 978-0471758013
8th Extended edition
Authors: Jearl Walker, Halliday Resnick
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