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State Probability Return on Stock X Return on Stock Y
Boom 60 0.15 0.08
Bust 40 0.05 0.20

What is the standard deviation of Stock X? What is the expected return on a portfolio that is equally weighted amongst Stocks X&Y, and a risk free asset? The expected return on the risk-free asset is 4%. Is the answer 8.9, 9.3, 10.1 or 11.8?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M91646540

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