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Ameena is considering two securities, A and B with two different scenarios (black. and white), given the information below: Probability Return on Security A (%)
Ameena is considering two securities, A and B with two different scenarios (black. and white), given the information below:
| Probability | Return on Security A (%) | Return on Security B (%) |
Black | 0.6 | 3.0% | 6.5% |
White | 0.4 | 15.0% | 6.5% |
Suppose Ameena invested $2,500 in Security A and $3,500 in security B. Calculate the expected return of her portfolio.
| Answer 1Choose...15.08%Asset (A)=6%, Asset (B)=2.6%Asset (A)=5.879%, Asset (B)=0Asset (A)=1.8%, Asset (B)=3.9%7.54%10%Asset (A)=7.8%, Asset (B)=6.5%Asset (A)=37.9, Asset (B)=05.04%6.00Asset (A)=34.56, Asset (B)=0Asset (A)=4.8%, Asset (B)=01%2.45%Asset (A)=0.763, Asset (B)=0Asset (A)=0, Asset (B)=1.330 |
Calculate the Variance of each security |
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