10. What is the expected return and standard deviation of a portfolio comprised of $10,000 in...
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10. What is the expected return and standard deviation of a portfolio comprised of $10,000 in stock M and $20,000 in stock N and covariance of M and N is 15%? (20 Points) State of Economy Boom Normal Recession Probability of State of Economy 10% 75% 15% Returns if State Occurs Stock M Stock N 18% 7% -20% 10% 8% 6% 10. What is the expected return and standard deviation of a portfolio comprised of $10,000 in stock M and $20,000 in stock N and covariance of M and N is 15%? (20 Points) State of Economy Boom Normal Recession Probability of State of Economy 10% 75% 15% Returns if State Occurs Stock M Stock N 18% 7% -20% 10% 8% 6%
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Expected return 662 Standard deviation 2713 Step1Calculation of expected return and standard deviati... View the full answer
Related Book For
Taxes and Business Strategy A Planning Approach
ISBN: 9780132752671
5th edition
Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
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