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Portfolio expected return and standard deviation

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Reference no: EM132726272

You currently hold two stocks in this portfolio: $14,000 is invested in Target (TGT) and $8,000 is invested in JCPenney (JCP).

Probability of State of Economy TGT JCP
Recession 35% 12% 6%
Normal 54% 9% 7%
Boom 11% -4% 9%

1 What is the portfolio expected return and standard deviation?

2 You still have $14,000 invested in TGT and $8,000 invested in JCP. If the beta of TGT is 0.65 and the portfolio beta is 1, what is the beta of JCP?

Reference no: EM132726272

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