ff2 Given the following information, what is the standard deviation of the returns on a portfolio that is invested40 percent in stock A, 35 percent in stock B, and the remainder in stock C?State of EconomyNormalRecessionO 12.72 percentO 14.07 percentO 1.41 percentO 7.41 percentO 11.86 percentProbability of State of economy..65.35Rate of Return is State OccursStock A14.3%-9.8%Stock B16.7%5.4%Stock C18.2%-26.9%

First, we need to calculate the expected return of the portfolio under each of the state of…

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

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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