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Suppose an investor creates a three asset portfolio combined of stock X, stock Y, and the risk-free asset. The investor puts 60% in Stock X, 30% in Stock Y, and 10% in the risk free rate.

Calculate the standard deviation on the portfolio. (Enter percentages as decimals and round to 4 decimals)

	Prob(State)	X	Y
Boom	50%	12%	8%
Normal	15%	6%	-5%
Bust	35%	-3%	3%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92850467

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