Question

In: Accounting

You decide to invest in a portfolio consisting of 32 percent Stock A, 46 percent Stock...

You decide to invest in a portfolio consisting of 32 percent Stock A, 46 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio?

State of Economy Probability of State Return if State Occurs
of Economy Stock A Stock B Stock C
Recession .113 − 10.00% − 3.40% − 12.40%
Normal .663 9.30% 10.64% 16.80%
Boom .224 21.53% 25.07% 29.77%

rev: 04_25_2019_QC_CS-167128

Multiple Choice

  • .01088

  • .00846

  • .00806

  • .00910

  • .00749

Solutions

Expert Solution

ekkarill92 answered 3 years ago
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