Question: State Boom Normal Bust Probability ..20 .50 .30 Return on A 20% 10% 8% Return on B 5% 8% 12% What is the standard deviation

standard deviation of a portfolio with 80% of the funds invested in

State Boom Normal Bust Probability ..20 .50 .30 Return on A 20% 10% 8% Return on B 5% 8% 12% What is the standard deviation of a portfolio with 80% of the funds invested in A? the SML uses beta as its independent variable and the CML uses standard deviation as its dependent variable. Return on A State Boom 20% Probability .20 .50 .30 Return on B 5% 8% 12% Normal Bust 10% 8% What is the standard deviation of a portfolio with 80% of the funds invested in A? 3.7 3.9 3.3 3.1 3.5

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