Consider the following information:

 

            State        Probability                       X                     Z

            Boom              .25                              15%             10%

            Normal           .60                              10%             9%

            Recession       .15                              5%                10%

 

 

You have $10,000 for investment. What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Z?      

    • 6 years ago
    Finance question
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