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Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What are
Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What are the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with equal investment in all three assets? d. What is the portfolio's variance and standard deviation using the same asset weights in part (c)? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a. What is the expected return of asset R? (Round to four decimal places.) Data Table x What is the expected return of asset S? (Round to four decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) What is the expected return of asset T? (Round to four decimal places.) State of Economy Boom Growth Stagnant Recession Return on Asset R in State 0.025 0.025 0.025 0.025 Probability of State 0.26 0.37 0.21 0.16 Return on Asset S in State 0.290 0.110 0.160 -0.025 b. What is the variance of asset R? Return on Asset Tin State 0.480 0.260 0.020 -0.160 (Round to four decimal places.) What is the variance of asset S? Print Done (Round to four decimal places.) What is the variance of asset T? (Round to four decimal places.) What is the standard deviation of asset R? (Round to four decimal places.) Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What are the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with equal investment in all three assets? d. What is the portfolio's variance and standard deviation using the same asset weights in part (c)? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. What is the variance of asset T? Data Table X (Round to four decimal places.) What is the standard deviation of asset R? (Round to four decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) What is the standard deviation of asset S? (Round to four decimal places.) State of Economy Boom Growth Stagnant Recession Probability of State 0.26 0.37 0.21 0.16 Return on Asset R in State 0.025 0.025 0.025 0.025 Return on Asset S in State 0.290 0.110 0.160 -0.025 Return on Asset Tin State 0.480 0.260 0.020 -0.160 What is the standard deviation of asset T? (Round to four decimal places.) c. What is the expected return of a portfolio with equal investment in all three assets? Print Done (Round to four decimal places.) d. What is the portfolio's variance using the same asset weights from part (c)? | (Round to four decimal places.) What is the portfolio's standard using the same asset weights from part (c)? (Round to four decimal places.)
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