In: Finance
Invest 0 of your money in Asset A and 100% in Asset B.
State Probability A B
Boom .25 12% 4%
Bust .75 6% 18%
what is the standard deviation of the return on the portfolio?
a. 1.7 |
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b. 2.6 |
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c. 3.9 |
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d. 4.6 |
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e. 5.6 |
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f. 6.9 |
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g. 7.5 |
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h. 9.0 |
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i. 8.2 |
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j. 11 |
Formula:
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