What is the portfolio


A portfolio consists of 40 percent of Stock S and 60 percent of Stock T. Stock S will return 13 percent if the economy booms and 8 percent if it is normal. Stock T will return 6 percent in a boom and 10 percent in a normal economy. The probability of a boom is 50 percent. What is the portfolio variance? .001014 .000004 .000040 .001004 .000009

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the portfolio
Reference No:- TGS02408567

Expected delivery within 24 Hours