Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following information: Rate of Return If State Occurs State of Probability of Stock C Economy State of Economy Stock A Stock B Boom

image text in transcribed

Consider the following information: Rate of Return If State Occurs State of Probability of Stock C Economy State of Economy Stock A Stock B Boom Good Poor Bust .25 .15 .30 .30 .03 .12 .05 -.05 39 .22 -04 -.18 30 .15 -07 -09 a. Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Expected return % b-1.What is the variance of this portfolio? (Round your answer to 5 decimal places.) Variance of this portfolio b- The standard deviation? (Round your answer to 2 decimal places. Omit the "%" sign 2. in your response.) Standard deviation ae

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

Step: 3

blur-text-image

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

Trading For Beginners 25 Secrets To Trade For A Living

Authors: Mark Bresett

1st Edition

1521327742, 978-1521327746

More Books

Students also viewed these Finance questions