Consider the following information: State of Probability of Economy State of Economy Boom Good Rate of Return if State Occurs 15 45 30 10 Stock A Stock C 32 .33 19 12 Poor -.05 -.06 Bust -16 -28 -.09 Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the standard deviation of this portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Do not include a percent sign with your answer.) Stock B 42 13 -.08
Consider the following information: State of Probability of Economy State of Economy Boom Good Rate of Return if State Occurs 15 45 30 10 Stock A Stock C 32 .33 19 12 Poor -.05 -.06 Bust -16 -28 -.09 Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the standard deviation of this portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Do not include a percent sign with your answer.) Stock B 42 13 -.08
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
![Consider the following information:
State of Probability of
Economy
State of
Economy
15
45
30
.10
Stock A
Stock B
Boom
32
42
Good
19
13
Poor
-.05
-08
Bust
-16
-,28
-09
Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the standard deviation of this portfolio?
(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Do
not include a percent sign with your answer.)
Numeric Response
****
Rate of Return
if State Occurs
wwwww
Stock C
33
12
-.06](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa51e933b-ba3d-42c9-b6cc-7bf0377c4bf9%2Fc560abe4-ad14-479e-bd71-226c1b0e539a%2F9s7yeg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following information:
State of Probability of
Economy
State of
Economy
15
45
30
.10
Stock A
Stock B
Boom
32
42
Good
19
13
Poor
-.05
-08
Bust
-16
-,28
-09
Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the standard deviation of this portfolio?
(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Do
not include a percent sign with your answer.)
Numeric Response
****
Rate of Return
if State Occurs
wwwww
Stock C
33
12
-.06
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