Expected Return on Stock Assignment | Homework for You
June 11th, 2020
Probability of Normal state is 80%, probability of recession is 20%. Return on Stock A is 11% in normal and 4% in recession. Return on Stock B is 18% in normal and 6% in recession. What is the standard deviation of the returns on a portfolio that is 30% in Stock A and 70% in Stock B?
8.7% | ||
6.2%% | ||
17.6% | ||
4.2% | ||
5.8% |
What is the expected return on Stock A?
9.6% | ||
11.6% | ||
7.0%% | ||
11% | ||
4% |
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