2. 10. Returns and standard deviations [LO 13.1] Consider the following information: 1. Your portfolio is invested

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2. 10.

Returns and standard deviations [LO 13.1] Consider the following information:

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1. Your portfolio is invested 30 per cent each in A and C, and 40 per cent in B. What is the expected return of the portfolio?

2. What is the variance of this portfolio? The standard deviation?

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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Question Posted: Oct 03, 2024 05:01 AM

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2. 10. Returns and standard deviations [LO 13.1] Consider the following information: 1. Your portfolio is invested

Question:

State of Probability of economy state of economy Rate of return if state occurs Share A Share B Share C Boom 0.10 0.35 0.40 0.27 Good 0.60 0.16 0.17 0.08 Poor 0.25 -0.01 -0.03 -0.04 Bust 0.05 -0.12 -0.18 -0.09

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Fundamentals Of Corporate Finance

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