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4. Stock M and N have the following probability distribution of returns: ETII Returns Economic Scenario Probabilities Stock M Stock N Recession 24% -1% -6% Normal 57% 12% 15% Boom 19% 18% 24% Required: Calculate portfolio coefficient of variation consisting of 41% of stock M and 59% of stock N and assume that correlation coefficient of two stocks is -0.45.

4. Stock M and N have the following probability distribution of returns: ETII Returns Economic Scenario Probabilities Stock M Stock N Recession 24% -1% -6% Normal 57% 12% 15% Boom 19% 18% 24% Required: Calculate portfolio coefficient of variation consisting of 41% of stock M and 59% of stock N and assume that correlation coefficient of two stocks is -0.45.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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4. Stock M and N have the following probability distribution of returns: Returns Economic Scenario Stock M Stock N Probabilities 24% Recession -1% -6% Normal 57% 12% 15% Вoom 19% 18% 24% Required: Calculate portfolio coefficient of variation consisting of 41% of stock M and 59% of stock N and assume that correlation coefficient of two stocks is -0.45.
Transcribed Image Text:4. Stock M and N have the following probability distribution of returns: Returns Economic Scenario Stock M Stock N Probabilities 24% Recession -1% -6% Normal 57% 12% 15% Вoom 19% 18% 24% Required: Calculate portfolio coefficient of variation consisting of 41% of stock M and 59% of stock N and assume that correlation coefficient of two stocks is -0.45.
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