Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following information about three stocks State of Economy Boom Nornal Bust Probability of State of Economy 0.26 0.45 Rate of the state occurs

image text in transcribed

image text in transcribed

Consider the following information about three stocks State of Economy Boom Nornal Bust Probability of State of Economy 0.26 0.45 Rate of the state occurs Stock A Stock Stock 0.28 0.32 0.54 0.16 0.14 -0.34 0.42 0.18 1. If your portfolio is invested 40% each in A and B and 20% in c. what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places Portfolio expected retum a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.) Variance .-3. What is the standard deviation? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Standard deviation b. If the expected T-bil rate is 400%, what is the expected risk premium on the portfolio? (Do not round Intermediate calculations Enter the answer as a percent rounded to 2 decimal places.) Expected risk premium anything n M 01 3. What the standard ? (Do not und intermediate triculation Enter the answer as a percent rounded to 2 decimal places.) Standard deviation ID DO . If the expected Tote 400, what is the expected rak premium ante portfolio Do not und intermediate calculations Enter the answer as a percent rounded to decimal places) Expected to pre 1. If the expected inflation rate is 2.00%, what are the approximate and exakt expected real return on the portiollo (Do not round intermediate calculations. Enter the newers as a percent rounded to 2 decimal places) primate reteral relu Exact este real c-2. What are the aparate and exact expected realkrems on the portfolio De not round Intermedinte calculations Enter the percent rounded to 2 decimal places Durchtrating

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_2

Step: 3

blur-text-image_3

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

Capital Markets Institutions Instruments And Risk Management

Authors: Frank J. Fabozzi

5th Edition

0262029480, 9780262029483

More Books

Students also viewed these Finance questions

Question

How flying airoplane?

Answered: 1 week ago

Question

Define intercultural conflict

Answered: 1 week ago