In: Finance
1) Stock A has a -13% return during a recession, 3% return during neutral times, and 14% return during boom times. What is the standard deviation for Stock A?
Probabilities:
Recession = .15
Neutral = .70
Boom = .15
Write the standard deviation in percent form. Ex: 3.5% is 3.5. Round your answer to two decimal places.
2)
You have a portfolio made up of 4 stocks. Stock W, with a weight of 10%, has an expected return of 12%. Stock X, with a weight of 20%, has an expected return of 19%. Stocks Y and Z each have weights of 35% and expected returns of 4% and 12% respectively. What is the expected return of your portfolio?
Write the expected return in percent form, round to two decimal places.