Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. onsider the following information on two stocks:

onsider the following information on two stocks: P(State) Stock A...

90.2K

Verified Solution

Question

Accounting

onsider the following information on two stocks:

P(State) Stock A Stock B
Boom 50% 0.25 0.15
Normal 20% 0.12 -0.06
Bust 30% -0.05 0.10

Suppose you invest $40,000 into stock A, and $60,000 into stock B. Calculate the standard deviation of the portfolio. (Enter percentages as decimals and round to 4 decimals)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A wind turbine with cut-in velocity of 8m/s and cut-out velocity of 30 m/s is installed...

Mechanical Engineering
Q

What are the potential factors that may affect the forecast accuracy of the time series analysis?...

General Management
Q

Di Iwo conducting rails are connected to a source of emf and form an incline...

Physics
Q

aidi Following figure shows the initial charges on the capacitors After the switch S is...

Physics
Q

Reuben sells football equipment to major colleges and universities. Foster Limited maintains their accounting records...

Accounting
Q

Metlock Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes...

Accounting
Q

A company reports the following income statement and balance sheet information for the current year:...

Accounting
Q

Requirement 2. If the market interest rate is 8% when ECU issues its bonds, will...

Accounting
Q

Calculate the European call price using the BSMOPM. The current stock price is 50 and...

Finance
Q

In reference to the Industrial Organization theory, strategists should be more concerned about the ...

Finance
Q

E-commerce 2. Credit card fraud is a wide-ranging term for theft and fraud committed using...

Finance
Q

Audrey received a $8,000 qualified tuition reduction equal from an eligible educational institution that was...

Accounting