Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. What is the variance of asset B? 2. What is the variance of asset C? 3. What is the standard deviation of asset A?

image text in transcribed1. What is the variance of asset B?

2. What is the variance of asset C?

3. What is the standard deviation of asset A?

4. What is the standard deviation of asset B?

5. What is the standard deviation of asset C?

Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a. What is the expected return of asset A? .0300 (Round to four decimal places.) A Data Table What is the expected return of asset B? .1123 (Round to four decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) What is the expected return of asset C? .1175 (Round to four decimal places.) State of Economy Boom Normal Recession Probability of State 0.34 0.49 0.17 Return on Asset A in State 0.03 0.03 0.03 Return on Asset B in State 0.23 0.08 -0.03 Return on Asset C in State 0.26 0.16 -0.29 b. What is the variance of asset A? 0.00000 (Round to five decimal places.) What is the variance of asset B? Print Done (Round to five decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions