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All answers must be entered as a formula in excel Consider the following information. Your portfolio is invested 30 percent each in A and C,
All answers must be entered as a formula in excel
Consider the following information. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? What is the variance of the portfolio? The standard deviation?
A B 4 State Probability StockA Stock B Stock C Boom Good Poor Bust 0.10 0.60 0.25 0.05 0.35 0.16 (0.01) (0.12) 0.45 0.10 (0.06) (0.20) 0.27 0.08 (0.04) (0.09) 9 10 weights 0.30 0.40 0.30 12 13 15 Complete the following analysis. Do not hard code values in your calculations 16 17 Portfolio Return Squared State Return ProductDeviation Deviation Product 18 19 20 21 Boom Good Poor Bust E(R)- Variance - 23 Standard Deviation
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