You want to invest your money on three stocks of Toyota, Boeing, and Microsoft by...
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Finance
You want to invest your money on three stocks of Toyota, Boeing, and Microsoft by constructing your own portfolio. 30% of your investment is on Toyota, 30% on Boeing and 40% on Microsoft. According to your investigation on stocks and economic condition, expected return on each stock by economic state of nature is as follows: STATE OF ECONOMY PROBALITY TOYOTA RETURN BOEING RETURN MICROSOFT RETURN BOOM 04 18 2% 19% NORMAL 06 IN 12 10% (1) What is the expected rate of return for this portfolio? (6pts) (2) What is the standard deviation for this portfolio? (9pts) Round up your answer to TWO decimals in %
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