DS Mamall YouTube Maps Assignment 8 (Chapter 13) Saved 12 Consider the following Information about three stocks: Rate of Return if State Occurs 5 points Stock A Stock 8 Stock C Skype State of Economy Boom Normal Bust Probability of State of Economy .22 46 32 30 23 .01 42 21 -22 58 .19 BOOK - 50 Hint PAGE References a-1. If your portfolio is invested 25 percent each in A and B and 50 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e.g. 32.16.) a-2. What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 16161.) 0-3. What is the standard deviation? (Do not round intermediate colculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 4.30 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.) c-1. If the expected inflation rate is 3.90 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Uuuue A Maps Assignment 8 (Chapter 13) Swed 12 5 points Skipped a-1. If your portfolio is invested 25 percent each in A and B and 50 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) a-2. What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g. 16161.) a-3. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.32.16.) b. if the expected T-bill rate is 4.30 percent, what is the expected risk premium on the portfoljo? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimol places, e.g. 32.16.) c-1. If the expected Inflation rate is 3.90 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) c-2. What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) eBook Print References % a-1. Portfolio expected return a-2. Varance a-3. Standard deviation b. Expected risk premium C-1. Approximate expected real return Exact expected real return c-2. Approximate expected real risk premium Exact expected real risk premium % % % %
