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1) 2) 3) Consider the following information on US and Canadian bonds: Expected return Standard deviation U.S. Bonds 0.02 0.01 Canadian bonds 0.02 0.01 The
1)2)3)
Consider the following information on US and Canadian bonds: Expected return Standard deviation U.S. Bonds 0.02 0.01 Canadian bonds 0.02 0.01 The correlation of the returns of US and Canadian bonds is 0.2. If 60 percent of a portfolio is invested in US bonds and the rest in Canada bonds. What is the standard deviation of portfolio returns? Report your answer in decimal form rounded to the fourth decimal place. An investor has three assets in her portfolio: $7 in a 529 college savings plan, with expected return of 2 percent, $9 in bonds, with expected return of 10 percent, and $2 of baseball cards, with expected return of 8 percent. What is her portfolio's expected return? Report your answer in decimal form rounded to the fourth decimal place (e.g., .1234) Consider a project with the following possible outcomes: Scenario Probability Possible outcome Boom 30% $1,141 Normal 45% $807 Bust 25% $240 What is the expected value of this probability distribution? Report your answer to the nearest whole dollar (e.g., 1234)Step by Step Solution
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