You decide to invest in a portfolio consisting of 17 percent Stock X. 50 percent Stock Y. a on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Economy Return if State Occurs Stock X Stock Y Stock Z Normal Boom .76 24 10.40% 17.70% 3.80 % 12.80% 25.70% 17.20%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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You decide to invest in a portfolio consisting of 17 percent Stock X, 50 percent Stock Y. and the remainder in Stock Z. Based
on the following information, what is the standard deviation of your portfolio?
State of Economy Probability of State Economy Return if State Occurs
Stock X
Stock Y
Stock Z
Normal
Boom
76
24
10.40%
17.70%
3.80 % 12.80%
25.70% 17.20%
Transcribed Image Text:You decide to invest in a portfolio consisting of 17 percent Stock X, 50 percent Stock Y. and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Economy Return if State Occurs Stock X Stock Y Stock Z Normal Boom 76 24 10.40% 17.70% 3.80 % 12.80% 25.70% 17.20%
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