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Depending on how much the economy grows over the coming years, certain assets will likely do well while others less so. Below, you find analyst
Depending on how much the economy grows over the coming years, certain assets will likely do well while others less so. Below, you find analyst expectations for 2 stocks, Newcrest Mining and Caterpillar, for the year 2021: Growth Stagnant Moderate High 0.30 0.45 0.25 Probability Newcrest Mining 17.0% 3.0% -14.0% Caterpillar 4.0% 13.0% 26.0% A) What is the expected return of Newcrest Mining in 2021? % (Round to two decimal places) B) What is the expected return of Caterpillar in 2021? % (Round to two decimal places) C) What is the expected standard deviation of Newcrest Mining in 2021? % (Round to two decimal places) D) What is the expected standard deviation of Caterpillar in 2021? % (Round to two decimal places) You decide to form a portfolio of these 2 assets (25.0% in Newcrest Mining; 75.0% in Caterpillar). E) What is the expected return on this portfolio in 2021? % (Round to two decimal places) F) What is the expected standard deviation of this portfolio in 2021? % (Round to two decimal places)
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