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How do I do number 18? - 16 18: Please use the following information to find correct answers. - You decide to invest in a
How do I do number 18?
- 16 18: Please use the following information to find correct answers. - You decide to invest in a portfolio consisting of 34 percent Stock A, 45 percent Stock B, and the remainder in Stock C. 16. What is the expected return on your portfolio? 0.07128 a. 7.43%.34(.0990)+.45(.0330)+.21(.1230)= c. 12.35%.34(.0920)+.45(.1062)+.21(.1670)=0.11414 d. 24.82%.34(.2151)+.45(.2503)+.21(.2973)=0.248202 E(R)=.112(0.07128)+.601(0.11414)+.227(.248202)=0.1238 17. What is the variance of your portfolio? a. 107.6%% b.90.1%%c.83.7%%112(0.071280.1238)2+.41(0.11414.1236)2+ d. 79.7%%.227(.248202.1238)2=0.007837 18. What is the standard deviation of your portfolio? a. 7.41% b. 10.76% c. 9.21% d. 8.93% 19. You have a portfolio that is invested 21 percent in Stock R, 34 percent in Stock S, and the remainder inStep by Step Solution
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