Portfolio Returns and Volatilities Given the following information, calculate the expected return and standard deviation for a portfolio that has 45 percent invested in Stock A, 35 percent in Stock B, and the balance in Stock C.
|
Returns |
||||
|
State of Economy |
Probability of State of Economy |
Stock A |
Stock B |
Stock C |
|
Boom |
0.7 |
15% |
18% |
20% |
|
Bust |
0.3 |
10 |
0 |
10 |