Question
Consider the following: state of economy probability of state of economy stock A rate of return stock B rate of return stock C rate of
Consider the following:
state of economy | probability of state of economy | stock A rate of return | stock B rate of return | stock C rate of return |
boom | .14 | .11 | .36 | .51 |
normal | .51 | .19 | .21 | .29 |
bust | .35 | .20 | -.20 | -.39 |
A. If your portfolio is invested 44 percent each in A and B and 12 percent in C, what is the portfolios expected return, the variance, and the standard deviation? (Do not round intermediate calculations. Round your variance answer to 5 decimal places, e.g., 32.16161. Enter your other answers as a percent rounded to 2 decimal places, e.g., 32.16.)
EXPECTED RETURN? __________________%
VARIANCE? __________________
STANDARD DEVIATION?________________%
B. If the expected T-bill rate is 4.2 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
EXPECTED RISK PREMIUM?____________%
**** Please provide me the answers for A: parts 1,2, & 3 and for part B 1
I dont have excel on my laptop cant do the work if you can explain do not provide excel explenation...ty....
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