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Calculate standard deviation for the investment portfolio

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Reference no: EM132645694

Arina plans to form an investment portfolio that comprised of 50 percent investment in Share X, 25 percent investment in Share Y and 25 percent in Share Z The following are the estimated returns for all the three types of financial assets:

Year                      Probability (P)               Expected Return (%) of Financial Assets

                                                                                     X                 Y                        Z

Strong                  0.48                                    10            15                20

Weak                    0.52                                   10                6                  1

Calculate:

Question i. Expected return for each share.

Question ii. Expected return for investment portfolio of share X, Y and Z.

Question iii. Standard deviation for the investment portfolio.

Reference no: EM132645694

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