Assuming you are investing 50% in A and 50% in B,  The possible returns and associated probabilities of two shares, A and B SHARE A SHARE B PA RA (%) PB RB (%) 0.05 10 0.05 12 0.25 15 0.25 18 0.40 22 0.40 28 0.25 25 0.25 32 0.05 30 0.05 38 1.00   1.00   Required what will be the portfolio risk and returns

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assuming you are investing 50% in A and 50% in B, 

The possible returns and associated probabilities of two shares, A and B

SHARE A

SHARE B

PA

R(%)

PB

R(%)

0.05

10

0.05

12

0.25

15

0.25

18

0.40

22

0.40

28

0.25

25

0.25

32

0.05

30

0.05

38

1.00

 

1.00

 

Required

what will be the portfolio risk and returns

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