You Are Considering a Portfolio Consisting of Equal Investments in the Stocks

question 47

Essay

You are considering a portfolio consisting of equal investments in the stocks Northbank Inc.and Tropical Escapes Inc.Returns on the 2 stocks under various conditions are shown below.
Scenario Return (%)Return % Return %
Probability Northbank Tropical Portfolio
0.20 4% 16%
0.50 10% 10%
0.30 20% -10%
Calculate the expected rate of and the standard deviation return of the portfolio.

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The act of matching attitudes, beliefs, and behaviors to group norms or standards.

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