In: Finance
You have the following information:
Economy
State Probability
Stock
A Stock
B Stock
C
Good .4 14% 10% 22%
Neutral
.23 0% 1% 14%
Bad .37 -3% -9% -34%
Suppose the risk-free rate is 3%. Calculate the variance of a portfolio that has $3,000 in Stock B, $4,000 in Stock C, and $5,000 in the risk-free asset.
0.012883 |
||
0.011243 |
||
0.011250 |
||
0.012941 |
||
None of the above. |
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