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QUESTION 22 You decide to invest in a portfolio consisting of 20% Stock A, 20% Stock B, and the remainder in Stock C. Based on what is the standard deviation of your portfolio? State of Economy Probability of State Economy Return if State Occurs Stock A Stock B Stock C Recession 0.15 -5% -3% -6% Normal 0.55 8% 5% 2% Boom 0.30 15% 10% 15% 0.123243 O 0.004044 O 0.063591 0.043243 D

QUESTION 22 You decide to invest in a portfolio consisting of 20% Stock A, 20% Stock B, and the remainder in Stock C. Based on what is the standard deviation of your portfolio? State of Economy Probability of State Economy Return if State Occurs Stock A Stock B Stock C Recession 0.15 -5% -3% -6% Normal 0.55 8% 5% 2% Boom 0.30 15% 10% 15% 0.123243 O 0.004044 O 0.063591 0.043243 D

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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QUESTION 22 You decide to invest in a portfolio consisting of 20% Stock A, 20% Stock B, and the remainder in Stock C. Based on what is the standard deviation of your portfolio? State of Economy Probability of State Economy Return if State Occurs Stock A Stock B Stock C Recession 0.15 -5% -3% -6% Normal 0.55 8% 5% 2% Boom 0.30 15% 10% 15% 0.123243 O 0.004044 O 0.063591 0.043243 D
Transcribed Image Text:QUESTION 22 You decide to invest in a portfolio consisting of 20% Stock A, 20% Stock B, and the remainder in Stock C. Based on what is the standard deviation of your portfolio? State of Economy Probability of State Economy Return if State Occurs Stock A Stock B Stock C Recession 0.15 -5% -3% -6% Normal 0.55 8% 5% 2% Boom 0.30 15% 10% 15% 0.123243 O 0.004044 O 0.063591 0.043243 D
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