9.
There are three securities in the market. The following chart shows their possible payoffs: Probability Return on Return on Return on State of Outcome Security 1 Security 2 Security 3 1 .15 206 206 .056 2 .35 106 106 3 3 .35 .106 .156 .156 4 .15 .056 .056 206 -1 What is the expected return of each security? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e... 32.16.) Security Security 2 Security % % X x a-2. What is the standard deviation of each security? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e... 32.16.) Security 1 Security 2 Security b-1. What are the covariances between the pairs of securities? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 5 decimal places, e.g., 32.16162.) Security 182 Security 183 Security 2 & 3 b-2. What are the correlations between the pairs of securities? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 4 decimal places, c.g., 32.1616.) Security 1 & 2 Security 1 & 3 Security 2 & 3 1. What is the expected return of a portfolio with half of its funds invested in Security 1 and half in Security 2? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Security 1&2 c-2. What is the standard deviation of a portfolo with half of its funds invested in Security 1 and half in Security 2? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e... 32.16.) Security 1 & 2 d-1. What is the expected return of a portfolio with half of its funds invested in Security 1 a and half in Security 3? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.... 32.16.) Security 183 d-2. What is the standard deviation of a portfolio with half of its funds invested in Security 1 and half in Security 32 (Leave no cells blank.be certain to enter "o" wherever required.) Security 1&3 e-1 What is the expected return of a portfolio with half of its funds invested in Security 2 and half in Security 3? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.... 32.16.) Security 2 & 3 e-2. What is the standard deviation of a portfolio with half of its funds Invested in Security 2 and half in Security 32 (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.... 32.16.) Security 2 & 3 %
