Suppose you hold a portfolio of two stocks in the healthcare industry. The futureoutcomes for these stocks depend mainly on the next healthcare bill to be passed byCongress. The possible outcomes and returns are:Outcome1-Republican Bill 0.82=Democratic Bill 0.2Probability7.5% and 4%5.1% and 3.2%9.9% and 3.2%Return for Stock A12%3%Return for StockBWhat is the expected return and a standard deviation of a portfolio that has 50% ofits value in stock A and 50% in stock B?-5%20%

Portfolio return is the amount of return which is earned by the investor from investing money in…

Suppose you hold a portfolio of two stocks in the healthcare industry. The future outcomes for these stocks depend mainly on the next healthcare bill to be passed by Congress. The possible outcomes and returns are: Outcome 1-Republican Bill 0.8 7.5% and 4% Probability 5.1% and 3.2 % 9.9% and 3.2% Return for Stock A 12% 2-Democratic Bill 0.2 What is the expected return and a standard deviation of a portfolio that has 50% of its value in stock A and 50% in stock B? Return for Stock B 3% -5% 20%

Suppose you hold a portfolio of two stocks in the healthcare industry. The future outcomes for these stocks depend mainly on the next healthcare bill to be passed by Congress. The possible outcomes and returns are: Outcome 1-Republican Bill 0.8 7.5% and 4% Probability 5.1% and 3.2 % 9.9% and 3.2% Return for Stock A 12% 2-Democratic Bill 0.2 What is the expected return and a standard deviation of a portfolio that has 50% of its value in stock A and 50% in stock B? Return for Stock B 3% -5% 20%

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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please this part of the question ASAP too What is the standard deviation of the rate of return on your client's portfolio? (Round your intermediate calculations and final answer to 1 decimal place.)
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