help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Consider the following stocks State Probability Ford Apple recession 0

Consider the following stocks State Probability Ford Apple recession 0

Finance

Consider the following stocks

State Probability Ford Apple
recession 0.2 -5% 15%
normal 0.5 10% 10%
boom 0.3 15% 10%

a. Find the expected return and standard deviation for each stock.

b. Find the covariance and correlation between the two stocks, do you think we are diversifying well by investing in these two stocks?

c. Find the expected return and standard deviation for a portfolio that has 60% invested in Ford and 40% invested in Apple?

Option 1

Low Cost Option
Download this past answer in few clicks

2.86 USD

PURCHASE SOLUTION

Already member?

Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

rated 5 stars

Purchased 3 times

Completion Status 100%
View Answer

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)