Calculate the standard deviation of the portfolio

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Question - You are considering constructing a portfolio of two assets - Blue Ltd shares and Green Ltd shares. You want to invest $5,250 in Blue Ltd shares and $9,750 in Green Ltd shares. Due to the uncertainty facing the investment environment in 2021, you decide there is a 35% possibility of recession, 15% possibility of growth, or 50% possibility of economic stability. You believe under these states Blue Ltd and Green Ltd shares will provide the following returns:

Calculate the expected return of the portfolio consisting of Blue Ltd and Green Ltd shares.

Calculate the standard deviation of the portfolio consisting of Blue Ltd and Green Ltd shares.

Reference no: EM132811564

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Calculate the standard deviation of the portfolio : Blue Ltd shares and Green Ltd shares. You want to invest $5,250 in Blue Ltd shares and $9,750 in Green Ltd shares. Calculate standard deviation of portfolio
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