What is the standard deviation of the returns on a $40,000 portfolio which consists of stocks...

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Finance

What is the standard deviation of the returns on a $40,000portfolio which consists of stocks C and D? Stock C is valued at$22,000.
State of
Economy
Probability of
State of Economy
Returns if State Occurs
Stock C Stock D
Boom 20% 15% 4%
Normal 70% 9% 6%
Recession 10% -2% 5%

Answer & Explanation Solved by verified expert

3.9 Ratings (687 Votes)

Solution Portfolios Standard deviation 00231 in decimal 231 in Working Notes First of all We calculate weight of each stock in the portfolio Weight of Stock C in portfolio Stock C value portfolio value 2200040000 055 Weight of Stock D in portfolio 1Weight of Stock C in portfolio 1 055 045 Then See Answer

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What is the standard deviation of the returns on a $40,000 portfolio which consists of stocks...

80.2K

Verified Solution

Question

Finance

What is the standard deviation of the returns on a $40,000portfolio which consists of stocks C and D? Stock C is valued at$22,000.
State of
Economy
Probability of
State of Economy
Returns if State Occurs
Stock C Stock D
Boom 20% 15% 4%
Normal 70% 9% 6%
Recession 10% -2% 5%

Answer & Explanation Solved by verified expert

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Other questions asked by students

State of Economy	Probability of State of Economy	Returns if State Occurs
State of Economy	Probability of State of Economy	Stock C	Stock D
Boom	20%	15%	4%
Normal	70%	9%	6%
Recession	10%	-2%	5%

What is the standard deviation of the returns on a $40,000 portfolio which consists of stocks...

80.2K

Verified Solution

Question

Finance

What is the standard deviation of the returns on a $40,000portfolio which consists of stocks C and D? Stock C is valued at$22,000.State ofEconomyProbability ofState of EconomyReturns if State OccursStock CStock DBoom20%15%4%Normal70%9%6%Recession10%-2%5%

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Transcribed Image Text

Other questions asked by students

What is the standard deviation of the returns on a $40,000portfolio which consists of stocks C and D? Stock C is valued at$22,000.
State of
Economy
Probability of
State of Economy
Returns if State Occurs
Stock C Stock D
Boom 20% 15% 4%
Normal 70% 9% 6%
Recession 10% -2% 5%