2. The table below shows a portfolio of stocks. Using the information on the table, perform the following tasks. (30 points)
1. Stock 
2. Total Value 
3. Weight 
Stock Return 

Recession (60%) 
Normal (40%) 

MRK 
$ 4,600 
15% 
10% 

VZ 
$ 4,400 
1% 
15% 

AAPL 
$ 7,500 
8% 
18% 

CAT 
$ 2,500 
2% 
5% 

FDX 
$ 1,000 
3% 
12% 
Complete column 3 using the total value to compute the weights.
Calculate the overall expected return of the portfolio assuming that the probability of a recession is equal to 60%.
Calculate the standard deviation of the portfolio.
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