You have a portfolio that is comprised of 40% of Stock A and 60% of Stock B.
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You have a portfolio that is comprised of 40% of Stock A and 60% of Stock B. What is the variance of the portfolio?
State of the Economy | Probability | E(RA) | E(RB) | ||
40 | % | 60 | % | ||
Normal | .7 | 12 | % | 14 | % |
Recession | .3 | −7 | % | −10 | % |
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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