Stock S is expected to return 12 percent in a boom, 9 percent in a normal economy, and 2 percent in a recession. Stock T is expected to return 4 percent in a boom, 6 percent in a normal economy, and 9 percent in a recession. There is a 10 percent probability of a boom and a 25 percent probability of a recession. What is the standard deviation of a portfolio which is comprised of $4,500 of Stock S and $3,000 of Stock

Respuesta :

Answer:

3.6%

Explanation:

Standard Deviation is the quantity that shows how much a each element of a group differs from the mean of the group on average.  

Standard Deviation is 3.6%. All the calculations and workings are done in an MS Excel file, which is attached with this answer, please find it.

Ver imagen hyderali230