Mean of the portfolio: 0.5*7%+0.5*12%=9.5%
Standard deviation of the portfolio: (0.5^2*0.2^2+0.5^2*0.15^2)^0.5=0.125
The z score is (9.5%-12%)/0.125=-0.2
The prob of z larger than -0.2 is 1-42.07%=57.93% . So we should choose D rather than A, right?
lelexavier · 2020年04月14日
Mean of the portfolio: 0.5*7%+0.5*12%=9.5%
Standard deviation of the portfolio: (0.5^2*0.2^2+0.5^2*0.15^2)^0.5=0.125
The z score is (9.5%-12%)/0.125=-0.2
The prob of z larger than -0.2 is 1-42.07%=57.93% . So we should choose D rather than A, right?
Please ignore my question. I already figure it out. The solution is correct. Thanks.
