Using the table below, calculate the Standard Deviation of the portfolio:   Demand for Company Products  Probability of this Demand Occurring  Rate of Return if this demand Occurs (k) Weak  0.15 -30% Below average  0.25 -15% Average  0.25 10% Above Average  0.20 25% Strong  0.15 45%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Using the table below, calculate the Standard Deviation of the portfolio:

 

Demand for Company Products  Probability of this Demand Occurring  Rate of Return if this demand Occurs (k)
Weak  0.15 -30%
Below average  0.25 -15%
Average  0.25 10%
Above Average  0.20 25%
Strong  0.15 45%

 

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