Your investment options are stocks of either Green Energy or…
Your investment options are stocks of either Green Energy or Oil Energy or a combination of those two. The following are possibilities of what may happen to these stocks depending on the political scenario. Possible Outcomes Probability Green’s StockReturns (%) Oil’s StockReturns (%) DEM 0.40 15 5 REP 0.50 5 15 IND 0.10 1 8 What is the standard deviation of returns of a portfolio with 50% investment in Green and 50% in Oil?