Assuming you are investing 50% in A and 50% in B, The possible returns and associated probabilities of two shares, A and B SHARE A SHARE B PA RA (%) PB RB (%) 0.05 10 0.05 12 0.25 15 0.25 18 0.40 22 0.40 28 0.25 25 0.25 32 0.05 30 0.05 38 1.00 1.00 Required what will be the portfolio risk and returns
Assuming you are investing 50% in A and 50% in B, The possible returns and associated probabilities of two shares, A and B SHARE A SHARE B PA RA (%) PB RB (%) 0.05 10 0.05 12 0.25 15 0.25 18 0.40 22 0.40 28 0.25 25 0.25 32 0.05 30 0.05 38 1.00 1.00 Required what will be the portfolio risk and returns
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
Section: Chapter Questions
Problem 1PS
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Question
Assuming you are investing 50% in A and 50% in B,
The possible returns and associated probabilities of two shares, A and B
|
SHARE A |
SHARE B | ||
|
PA |
RA (%) |
PB |
RB (%) |
|
0.05 |
10 |
0.05 |
12 |
|
0.25 |
15 |
0.25 |
18 |
|
0.40 |
22 |
0.40 |
28 |
|
0.25 |
25 |
0.25 |
32 |
|
0.05 |
30 |
0.05 |
38 |
|
1.00 |
|
1.00 |
|
Required
what will be the portfolio risk and returns
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