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Stocks and Portfolio

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Returns
State of the economy Probability A Comp. B Comp
Good 70% 5% 40%
Normal 20% 12% 25%
Poor 10% 20% 7%

What are the expected returns for A and B Comp? What is the standard deviation for each stock? What is the expected return for the portfolio if you invest 40% in A and 60% in B? What's the portfolio standard deviation with those weights?

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The expert examines the stocks and portfolio returns for the state of the economy.

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Returns
State of the economy Probability A Comp B Comp
Good 70% 5% 40%
Normal 20% 12% 25%
Poor 10% 20% 7%

What are the expected returns for A and B Comp?
Returns
State of the economy Probability A Comp B Comp
Good 70% (A) 5% (B) 40%
Normal 20% (C) 12% (D) 25%
Poor 10% (E) 20% ...

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Chidi Ngene, M. Sc.
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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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