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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom
Consider the following information: |
Rate of Return if State Occurs | ||||
State of Economy | Probability of State of Economy | Stock A | Stock B | Stock C |
Boom | .20 | .38 | .48 | .28 |
Good | .50 | .14 | .19 | .12 |
Poor | .20 | .05 | .08 | .06 |
Bust | .10 | .19 | .23 | .09 |
Requirement 1: |
Your portfolio is invested 22 percent each in A and C, and 56 percent in B. What is the expected return of the portfolio? (Do not round your intermediate calculations.) |
(Click to select)27.18%19.88%16.68%9.78%13.18% |
Requirement 2: |
(a) | What is the variance of this portfolio? (Do not round your intermediate calculations.) |
(Click to select)2.3349.6349.0349-.76511.2349 |
(b) | What is the standard deviation? (Do not round your intermediate calculations.) |
(Click to select)15.38%18.68%16.38%23.08%20.88% |
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