Consider the following information:
Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom 0.15 0.33 0.43 0.23 Good 0.55 0.18 0.14 0.12 Poor 0.25 -.05 -.08 -.06 Bust 0.05 -.13 -.18 -.10
a. Your portfolio is invested 26 percent each in A and C, and 48 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16))
Expected return %
b-1 What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places. (e.g., 32.16161))
Variance
b-2 What is the standard deviation? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Standard deviation %
| Consider the following information: |
| Rate of Return if State Occurs | ||||||||||||
| State of | Probability of | |||||||||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | 0.15 | 0.33 | 0.43 | 0.23 | ||||||||
| Good | 0.55 | 0.18 | 0.14 | 0.12 | ||||||||
| Poor | 0.25 | -.05 | -.08 | -.06 | ||||||||
| Bust | 0.05 | -.13 | -.18 | -.10 | ||||||||
| a. | Your portfolio is invested 26 percent each in A and C, and 48 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Expected return | % |
| b-1 | What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places. (e.g., 32.16161)) |
| Variance |
| b-2 | What is the standard deviation? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Standard deviation | % |
Related questions
| Consider the following information: |
| Rate of Return If State Occurs | ||||||||||||
| State of | Probability of | |||||||||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | .15 | .33 | .43 | .23 | ||||||||
| Good | .55 | .18 | .14 | .12 | ||||||||
| Poor | .25 | â.05 | â.08 | â.06 | ||||||||
| Bust | .05 | â.13 | â.18 | â.10 | ||||||||
| a. | Your portfolio is invested 26 percent each in A and C, and 48 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculaitons. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected return | % |
| b-1 | What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) |
| Variance |
| b-2 | What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| onsider the following information: |
| Rate of Return if State Occurs | ||||||||||||
| State of | Probability of | |||||||||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | .15 | .39 | .49 | .29 | ||||||||
| Good | .55 | .15 | .20 | .08 | ||||||||
| Poor | .25 | â | .01 | â | .09 | â | .07 | |||||
| Bust | .05 | â | .20 | â | .24 | â | .10 | |||||
| a. | Your portfolio is invested 24 percent each in A and C, and 52 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Expected return | % |
| b-1. | What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) |
| Variance |
| b-2. | What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Standard deviation | % |
Consider the following information:
| Rate of Return if State Occurs | ||||||||||||
| State of | Probability of | |||||||||||
| Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
| Boom | 0.15 | 0.35 | 0.45 | 0.25 | ||||||||
| Good | 0.60 | 0.19 | 0.16 | 0.10 | ||||||||
| Poor | 0.20 | â | 0.03 | â | 0.06 | â | 0.05 | |||||
| Bust | 0.05 | â | 0.13 | â | 0.31 | â | 0.08 | |||||
| a. | Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Expected return | % |
| b-1 | What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places. (e.g., 32.16161)) |
| Variance |
| b-2 | What is the standard deviation? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Standard deviation | % |
