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18 Jan 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 .15 .350 .450 .330 Good .45 .120 .100 .170 Poor .35 .010 .020 â.050 Bust .05 â.110 â.250 â.090
Requirement 1: Your portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Expected return of the portfolio %
Requirement 2:
(a) What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places (e.g., 32.16161).)
Variance of the portfolio
(b) What is the standard deviation of this portfolio? (Do not round intermediate calculations. Enter your answer as a percentage 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 | .15 | .350 | .450 | .330 | ||
Good | .45 | .120 | .100 | .170 | ||
Poor | .35 | .010 | .020 | â.050 | ||
Bust | .05 | â.110 | â.250 | â.090 | ||
Requirement 1: |
Your portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Expected return of the portfolio | % |
Requirement 2: |
(a) | What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places (e.g., 32.16161).) |
Variance of the portfolio |
(b) | What is the standard deviation of this portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Standard deviation | % |
Jean KeelingLv2
20 Jan 2019