G21 A State of the Economy 5 Recession 6 Below avg. 7 Average 8 Above avg. 9 Boom X fx B Probability 0.1 0.2 Ready 0.4 0.2 0.1 10 Expected Return 11 Standard Deviation 12 Coefficient of Variation 13 Sharpe ratio 14 Beta 15 16 17 18 weight in High Tech 19 weight in Collections 20 21 22 23 24 25 26 27 28 Portfolio return 20 Dort str dov C T-Bills 3.0% 3.0% 3.0% 3.0% 3.0% 0.00 D Module 4 Exam A Returns on Alternative Investments U.S. Rubber* 3.5% -16.5% 0.5% 38.5% 23.5% High Tech -29.5% -9.5% 12.5% 27.5% 42.5% 1.31 State of the economy Port. return Recession Below average Average Above average Boom Collections 24.5% 10.5% -1.0% -5.0% -20.0% F -0.50 0.88 G Market portfolio -19.5% -5.5% 7.5% 22.5% 35.5% 1.00 H Suppose you created a 2-stock portfolio by investing $50,000 in High Tech and $50,000 in Collections. (1) Calculate the expected return, the standard deviation, the coefficient of variation, and the Sharpe ratio for this portfolio, and fill in the appropriate blanks in the table. 2-Stock Portfolio 0.0% 0.0% 0.0% 0.0% 0.0% 0.41

Suppose you created a 2-stock portfolio by investing $50,000 in High Tech and $50,000 in Collections. (1) Calculate the expected return, the standard deviation, the coefficient of variation, and the Sharpe ratio for this portfolio, and fill in the appropriate blanks in the table. weight in High Tech weight in Collections Portfolio return Dont eta dow