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| Chapter 4 - Diversification |
| 73 |
The table should read:
|
Stock Fund |
Bond Fund |
Portfolio |
| Scenario | Probability |
Return | Deviation |
Return | Deviation |
Return | Deviation |
Rapid Growth
Balanced Growth
Recession |
25%
50%
25% |
30.0
12.0
-10.0 |
19.0
1.0
-21.0 |
-2.0
5.0
8.0 |
-6
1.0
4.0 |
-60.0
60.0
-80.0 |
-114.0
1.0
-84.0 |
Expected Value
|
E[X]
E[X 2] - E[X]2
σ |
11.0
|
0.0
201.0
14.177 |
4.0
|
0.0
13.5
3.674 |
-5.0
|
-49.0
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| 74 |
The example should read:
1] Hypothetical Resources (HR) has an expected return of 21% with a standard deviation of 40%
E[RHR] = 0.21
sigmaHR = 0.40
CVHR = 1.905
2] Tardis Intertemporal (TI) has an expected return of 15% with a standard deviation of 20%
E[RTI] = 0.15
sigmaTI = 0.20
CVTI = 1.33
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| 77 |
The equation block at the bottom of the page is missing a subscript.
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| 85 |
Question 4-7 refers to Figure 4-2 not 7-4.
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