Finance : What is the standard deviation of stock C
Finance : What is the standard deviation of stock C
Subject: Business   / Finance
Question
Show all work and circle your final answer. Round final answer to the nearest hundredth. VAR and SD should be rounded to 6 places after decimal.
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You have a portfolio which is 25% invested in A, 35% invested in B, and 40% invested in C.
State Prob. Stock A Stock B Stock C
Good .25 25% 13% 44%
Bad .75 -8% -1.5% -13.5%
1. What is the standard deviation of stock C?
2. What is your portfolio expected return?
3. What is your portfolio variance?
4. You have $60,000 to invest into Stock G and Stock H. Stock G has an expected return of 15% and Stock H has an expected return of 6.7%. If you want to make a portfolio with an expected return of exactly 10%, how much must you invest in each stock?
