Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following information: Rate of Return if State Occurs State of Economy Boom Good Probability of State of Economy 0.25 2.15 0.30 0.30 Stock
Consider the following information: Rate of Return if State Occurs State of Economy Boom Good Probability of State of Economy 0.25 2.15 0.30 0.30 Stock A 0.23 0.12 -0.02 -0.18 Stock B Stock C 0.39 0.26 0.15 0.16 -0.12 -0.03 0.18 0.11 Poor Bust a. Your portfolio is invested 35 percent each in A and C and 30 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected retum b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.) Variance b-2. What is the standard deviation? (Do not round intermediate calculations. Enter your answer os o percent rounded to 2 decimal places.) Standard deviation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started