a. Construct an equal-weighted (50/50) portfolio of investments B and C. What are the expected rate...
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a. Construct an equal-weighted (50/50) portfolio of investments B and C. What are the expected rate of return and standard deviation of the portfolio? Explain your results.(6 Points) b. Construct an equal-weighted (50/50) portfolio of investments B and D. What are the expected rate of return and standard deviation of the portfolio? Explain your results. (6 Points) Year Very Poor Poor Average Good Very Good Probability 0.10 0.20 0.40 0.20 0.10 A -10% 0 10 20 30 B 30% 20 10 0 -10 C -25% 15 35 55 D 15% 10 0 25 35 AB 10% 10 10 10 10. AC AD -17.50% 2.5% -2.5 12.5 27.5 42.5 5.0 5.0 22.5 32.5 a. Construct an equal-weighted (50/50) portfolio of investments B and C. What are the expected rate of return and standard deviation of the portfolio? Explain your results.(6 Points) b. Construct an equal-weighted (50/50) portfolio of investments B and D. What are the expected rate of return and standard deviation of the portfolio? Explain your results. (6 Points) Year Very Poor Poor Average Good Very Good Probability 0.10 0.20 0.40 0.20 0.10 A -10% 0 10 20 30 B 30% 20 10 0 -10 C -25% 15 35 55 D 15% 10 0 25 35 AB 10% 10 10 10 10. AC AD -17.50% 2.5% -2.5 12.5 27.5 42.5 5.0 5.0 22.5 32.5
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a To construct an equalweighted 5050 portfolio of investments B and C we need to calculate the expected rate of return and standard deviation of the portfolio Expected rate ... View the full answer
Related Book For
Essentials Of Statistics For Business & Economics
ISBN: 9780357045435
9th Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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