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You have a portfolio comprising of 30 percent of Stock A and 70 percent of stock...

You have a portfolio comprising of 30 percent of Stock A and 70 percent of stock B. What is the portfolio Standard Deviation?

Economy State Probability E(R)-A E(R)-B

Boom 0.30 20% 14%

Normal 0.60 11% 9%

Recession 0.10 -23% -5%

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Answer #1

Gillen, Temmy late Tommy sbate peshability CER) CCR) Boom 0.3 201. Normal 14.7. 117 19.1. 0.6 Recenion - 23. -5.. I en, Recen

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