Question

In: Finance

You have a portfolio which is comprised of 30 percent of stock A and 70 percent...

You have a portfolio which is comprised of 30 percent of stock A and 70 percent of stock B. What is the portfolio standard deviation?

State of the Economy

Probability

E(R) A

E(R) B

30%

70%

Boom

0.15

20.00

14.00

Normal

0.75

11.00

9.00

Recession

0.10

-23.00

-5.00
A.

6.68%
B.

6.82%
C.

7.47%
D.

4.00%
E.

5.56%

The answer is not C.

Solutions

Expert Solution

Answer to the Question is Option "A"

Detailed Answer Attached:

jeff jeffy answered 2 years ago
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