There are two assets and three states of the economy:State of Economy Probability of State of Economy Rate of Return If State OccursStock ARecessionNormalStock B.30.50-.20.40.10.80.30Boom.20Suppose you have $20,000 total. If you put $15,000 in Stock A and the remainder in Stock B, what will be the standarddeviation of your portfolio? (Keep 2 post decimal digits in your final answer).50

Standard deviation is the quantative measure of risk and volatility of the stock and measured as…

There are two assets and three states of the economy: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Recession Normal Boom Suppose you have $20,000 total. If you put $15,000 in Stock A and the remainder in Stock B, what will be the st deviation of your portfolio? (Keep 2 post decimal digits in your final answer) .30 .50 .20 -.20 .40 .80 .10 .30 .50

There are two assets and three states of the economy: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Recession Normal Boom Suppose you have $20,000 total. If you put $15,000 in Stock A and the remainder in Stock B, what will be the st deviation of your portfolio? (Keep 2 post decimal digits in your final answer) .30 .50 .20 -.20 .40 .80 .10 .30 .50

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...

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