Calculate the weight of a in the portfolio

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State Prob(State) Stock A Stock B Boom 15% 0.22 -0.12

Normal 50% 0.07 0.15

Bust 35% -0.09 0.06

Suppose you invest $20,000 into stock A, and $15,000 into stock B:

1. Calculate the weight of A in the portfolio. (Enter percentages as decimals and round to 4 decimals)

2. Calculate the expected return of the portfolio. (Enter percentages as decimals and round to 4 decimals)

3. Calculate the variance of the portfolio. (Enter percentages as decimals and round to 4 decimals)

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

Reference no: EM132497827

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