Question: State Probability Return on A Return on B Return on C Boom . State Probability Return A Return B Return C Boom .70 15% 8%
State Probability Return on A Return on B Return on C Boom .
| State | Probability | Return A | Return B | Return C |
| Boom | .70 | 15% | 8% | 4% |
| Bust | .30 | 10% | 6% | -2% |
Im trying to work out the problem in excel but im not getting it... I know the answer but would like help with how to work...
What is the expected return of a portfolio with 20% of the funds invested in A and the rest evenly divided between B and C?
A. 5.76% B. 6.12% C. 6.54% D. 7.30% E.7.60%
What is the standard deviation of a portfolio with 20% of the funds invested in A and the rest evenly divided between B and C?
A. 1.64 B. 1.72 C. 1.92 D. 2.06 E. 2.41
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