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28 Sep 2019
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 %
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 | % |
Casey DurganLv2
28 Sep 2019