Question
Given the following information on two stocks and the market: Returns State of the Economy Probability of State Stock A Stock B Market Growth 20.0%
Given the following information on two stocks and the market:
|
|
| Returns | ||
| State of the Economy | Probability of State | Stock A | Stock B | Market |
| Growth | 20.0% | 15.0% | 9.0% | 10.0% |
| Modest Growth | 30.0% | 11.0% | 8.0% | 6.0% |
| Recession | 50.0% | 6.0% | 4.0% | -3.0 |
Calculate the Expected rate of return for Stock A, Stock B, and the Market Portfolio. Calculate the Standard Deviation for Stock A, Stock B, and the Market Portfolio. Calculate the beta for Stock A and Stock B, given the following correlation between the stocks and the market portfolio are as follows: CORRAM = 0.989960743 and CORRBM = 0.995049878
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Understanding Decentralized Finance How DeFi Is Changing The Future Of Money
Authors: Rhian Lewis
1st Edition
1398609390, 978-1398609396
