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Business, 14.04.2020 22:13 angelica19carmona

Richard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company. If he diversifies his investment by putting 50% of his money into each company, what is the expected return and standard deviation of his portfolio? State of the Economy Probability of the State Expected Return Sunglasses Company Expected Return Umbrella Company Sunny .50 25% 0% Rainy .50 0% 25% The expected return for the portfolio is 25.00% and the standard deviation 25.00%. The expected return for the portfolio is 25.00% and the standard deviation 0.00%. The expected return for the portfolio is 12.50% and the standard deviation 0.00%. The expected return for the portfolio is 12.50% and the standard deviation 12.50%.

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