Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, and the remainder in stock C? State of Economy. Normal Recession Probability of State of economy. .65 .35 Rate of Return is State Occurs Stock A 14.3% -9.8% Stock B 16.7% 5.4% Stock C 18.2% -26.9%

Essentials Of Investments
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Given the following information, what is the standard deviation of the returns on a portfolio that is invested
40 percent in stock A, 35 percent in stock B, and the remainder in stock C?
State of Economy
Normal
Recession
O 12.72 percent
O 14.07 percent
O 1.41 percent
O 7.41 percent
O 11.86 percent
Probability of State of economy.
.65
.35
Rate of Return is State Occurs
Stock A
14.3%
-9.8%
Stock B
16.7%
5.4%
Stock C
18.2%
-26.9%
Transcribed Image Text:Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, and the remainder in stock C? State of Economy Normal Recession O 12.72 percent O 14.07 percent O 1.41 percent O 7.41 percent O 11.86 percent Probability of State of economy. .65 .35 Rate of Return is State Occurs Stock A 14.3% -9.8% Stock B 16.7% 5.4% Stock C 18.2% -26.9%
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