10:05 Question 3 Suppose you have preferences given by U = E(r) Ao?with A = 10. You are considering forming a portfolio att = 0 based on the following two assets: Asset 1 has a current value of $100 per share Asset 2 has a current value of $100 per share The payoffs of the two assets att = 1 are described as follows: Scenario S=1 Probability Payoff of asset 1 0.5 120 0.5 100 s=2 Question 3a Unanswered 5 attempts left What is the expected return on the risky asset? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response 0/10 answered III Question 3b Unanswered 5 attempts left What is the return volatility of the risky asset? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response Submit Question 30 Unanswered 5 attempts left What is the risk free rate? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response Submit Question 3d Unanswered. 5 attempts left What fraction of your portfolio goes into Asset 1? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response Submit Question 3e Unanswered. 5 attempts left What fraction of your portfolio goes into Asset 2? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response Submit 10:05 Question 3 Suppose you have preferences given by U = E(r) Ao?with A = 10. You are considering forming a portfolio att = 0 based on the following two assets: Asset 1 has a current value of $100 per share Asset 2 has a current value of $100 per share The payoffs of the two assets att = 1 are described as follows: Scenario S=1 Probability Payoff of asset 1 0.5 120 0.5 100 s=2 Question 3a Unanswered 5 attempts left What is the expected return on the risky asset? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response 0/10 answered III Question 3b Unanswered 5 attempts left What is the return volatility of the risky asset? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response Submit Question 30 Unanswered 5 attempts left What is the risk free rate? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response Submit Question 3d Unanswered. 5 attempts left What fraction of your portfolio goes into Asset 1? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response Submit Question 3e Unanswered. 5 attempts left What fraction of your portfolio goes into Asset 2? Express your answer as a percent, rounded to the nearest percent (e.g., if you answer is 0.084 or 8.4%, fill in 8 in the answer box). Type your response Submit
