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Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, and the remainder in stock C? State of Economy. Normal Recession Probability of State of economy. .65 .35 Rate of Return is State Occurs Stock A 14.3% -9.8% Stock B 16.7% 5.4% Stock C 18.2% -26.9%

Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, and the remainder in stock C? State of Economy. Normal Recession Probability of State of economy. .65 .35 Rate of Return is State Occurs Stock A 14.3% -9.8% Stock B 16.7% 5.4% Stock C 18.2% -26.9%

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
Section: Chapter Questions
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Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, and the remainder in stock C? State of Economy Normal Recession O 12.72 percent O 14.07 percent O 1.41 percent O 7.41 percent O 11.86 percent Probability of State of economy. .65 .35 Rate of Return is State Occurs Stock A 14.3% -9.8% Stock B 16.7% 5.4% Stock C 18.2% -26.9%
Transcribed Image Text:Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, and the remainder in stock C? State of Economy Normal Recession O 12.72 percent O 14.07 percent O 1.41 percent O 7.41 percent O 11.86 percent Probability of State of economy. .65 .35 Rate of Return is State Occurs Stock A 14.3% -9.8% Stock B 16.7% 5.4% Stock C 18.2% -26.9%
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