Question: Assume that the % expected return for security A and the market M for a good, normal and bad economy (probabilities .3,4,.3) are 20, 16,

Assume that the % expected return for security A and the market M for a good, normal and bad economy (probabilities .3,4,.3) are 20, 16, and 10 for A and 8, 4, and 12 for M. Also assume that you invest 40% in A and 60% in M. Compute the standard deviation for a portfolio of A and M. 1.69 O 3.90 d 3.32 3.55
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
