You have a portfolio which is comprised of 40% of Stock A and 60% of Stock B. What is the portfolio standard deviation?
$\begin{array}{lllr}
\text { State of the Economy } & \text { Probability } &\text {E(R)}_{A}&\text { E(R)}_{B}\
&&40\%&60\%\
\
\text { Boom }&.10&20\%&14\%\
\text { Normal } & .75 & 11\% & 9 \% \
\text { Recegsion } & .15& -20 \% & -5 \%
\end{array}$

A)4.00%
B)5.56%
C)6.06%
D)6.82%
E)7.95%

Question

You have a portfolio which is comprised of 40% of Stock A and 60% of Stock B. What is the portfolio standard deviation?
$\begin{array}{lllr}
\text { State of the Economy } & \text { Probability } &\text {E(R)}_{A}&\text { E(R)}_{B}\
&&40\%&60\%\
\
\text { Boom }&.10&20\%&14\%\
\text { Normal } & .75 & 11\% & 9 \% \
\text { Recegsion } & .15& -20 \% & -5 \%
\end{array}$

A)4.00%
B)5.56%
C)6.06%
D)6.82%
E)7.95%

Quizplus · Accepted Answer

The Answer of You have a portfolio which is comprised of 40% of Stock A and 60% of Stock B. What is the portfolio standard deviation?
$\begin{array}{lllr}
\text { State of the Economy } & \text { Probability } &\text {E(R)}_{A}&\text { E(R)}_{B}\
&&40\%&60\%\
\
\text { Boom }&.10&20\%&14\%\
\text { Normal } & .75 & 11\% & 9 \% \
\text { Recegsion } & .15& -20 \% & -5 \%
\end{array}$

A)4.00%
B)5.56%
C)6.06%
D)6.82%
E)7.95%

You Have a Portfolio Which Is Comprised of 40% of Stock