Question: WITHOUT using excel please, will give good rating 3) You are a portfolio manager. John Smith, one of your clients, by providing you the following
3) You are a portfolio manager. John Smith, one of your clients, by providing you the following formation requested you to calculate standard deviation of Shah Corporation stock and High Fly Corporation. Shah Corporation Stock State of Economy Probability of State of Economy Rate of Retum if State Occurs Boom 5% 13% Good 25% 8% Poor 50% 2% Bust 20% -6% High Fly Corporation Stock State of Economy Probability of State of Economy Rate of Return if State Occurs Boom 5% 40% Good 25% 25% Poor 50% -5% Bust -28% 20% Based on the given information, what is the standard deviation of the retums on D) Shah Corporation and it) High Fly Corporation? Which stock has higher standard deviation? Why? Please provide your reasoning. Please show all the calculations by which you came up with the final answer. (8 Points)
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