Calculate the standard deviation of the portfolio

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Reference no: EM132698011

Consider the following information on two stocks:

Calculate the variance of stock B. (Enter percentages as decimals and round to 4 decimals)

Calculate the covariance(A,B). (Enter percentages as decimals and round to 4 decimals)

Suppose you invest $25,000 into stock A, and $15,000 into stock B. Calculate the variance of the portfolio. (Enter percentages as decimals and round to 4 decimals)

Suppose you invest $25,000 into stock A, and $15,000 into stock B. Calculate the standard deviation of the portfolio. (Enter percentages as decimals and round to 4 decimals)

State Prob(State) Stock A Stock B

Boom 20% 0.25 0.02

Normal 40% 0.11 0.15

Bust 40% -0.09 0.04

Reference no: EM132698011

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