Solved

What Is the Standard Deviation of the Returns on a $30,000

Question 83

Multiple Choice

What is the standard deviation of the returns on a $30,000 portfolio that consists of Stocks S and T? Stock S is valued at $18,000.  State of  Probability of  Rate of Return  Econony  State of Economy  if State Occurs  Stock S  Stock T  Boom .05.11.09 Normal .85.08.07 Bust .10.05.04\begin{array} { l c c } { \text { State of } } & \text { Probability of } & \text { Rate of Return } \\\text { Econony } & \text { State of Economy } & \text { if State Occurs } \\ & &\begin{array}{ll}\text { Stock S } & \text { Stock T }\end{array}\\\text { Boom } & .05& \begin{array}{ll}.11& \quad \quad .09\end{array} \\\text { Normal } & .85 & \begin{array}{ll}.08 & \quad \quad.07\end{array} \\\text { Bust } & .10&\begin{array}{ll}-.05& \quad \quad .04\end{array}\end{array}


A) 2.07 percent
B) 2.80 percent
C) 3.36 percent
D) 2.49 percent
E) 3.63 percent

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents