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EASY FINANCE 101 QUESTION WILL GIVE POINTS ASAP Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of
EASY FINANCE 101 QUESTION WILL GIVE POINTS ASAP
Consider the following information: |
Rate of Return if State Occurs | ||||||||||||
State of | Probability of | |||||||||||
Economy | State of Economy | Stock A | Stock B | Stock C | ||||||||
Boom | .10 | .34 | .44 | .24 | ||||||||
Good | .60 | .19 | .15 | .08 | ||||||||
Poor | .25 | ? | .01 | ? | .09 | ? | .07 | |||||
Bust | .05 | ? | .15 | ? | .19 | ? | .11 | |||||
a. | Your portfolio is invested 25 percent each in A and C, and 50 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 (e.g., 32.16).) |
Expected return | % |
b-1 | What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places (e.g., 32.16161).) |
Variance |
b-2 | What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
Standard deviation | % |
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