Mr. Buffett’s entire portfolio contains shares of Apple (15%), Kraft (36%), and Verizon. Using the information in the table below, the standard deviation of Mr. Buffett’s portfolio is ____________. (See table) a. 2.20% b. 4.69% c. 5.86% d. 6.83% e. 1.65%

Mr. Buffett’s entire portfolio contains shares of Apple (15%), Kraft (36%), and Verizon. Using the information in the table below, the standard deviation of Mr. Buffett’s portfolio is ____________. (See table) a. 2.20% b. 4.69% c. 5.86% d. 6.83% e. 1.65%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 4P

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Question

(See table)

a. 2.20%

b. 4.69%

c. 5.86%

d. 6.83%

e. 1.65%

Probability of State
Return if State Occurs
State of Economy
of Economy
Apple
Kraft
Verizon
Normal
.77
9.00%
2.40%
11.40%
Вoom
.23
16.30%
24.30%
15.80%

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