Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

look at photo attached for data. Requirement 1: Your portfolio is invested 28 percent each in A and C and 44 percent in B. What

image text in transcribed

look at photo attached for data.

Requirement 1:Your portfolio is invested 28 percent each in A and C and 44 percent in B. What is the expected return of the portfolio?(Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimalplaces(e.g., 32.16).)

Requirement 2:(a)What is the variance of this portfolio?(Do not roundintermediate calculations.Round your answer to 5 decimal places(e.g., 32.16161).)

(b)What is the standard deviation of this portfolio?(Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimalplaces(e.g., 32.16).)

image text in transcribed
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 369 469 349 Good 139 1 19 poor 029 039 094 Bust 12 129 265 109 Requirement Your portfolio is invested 28 percent each in A and C and 44 percent in B . What is the expected return of the portfolio ? Do not round intermediate calculations . Enter your answer as a percentage rounded to 2 decimal places ( e . 9 . , 32 16 ) . ) Expected return of the portfolio Requirement 2 ( a ) What is the variance of this portfolio ? Do not round intermediate calculations . Round your answer to 5 decimal places ( e. g , 32 16161 ) . ) Variance of the portfolio ( b ) What is the standard deviation of this portfolio ? Do not round intermediate calculations . Enter you answer as a percentage rounded to 2 decimal places ( e g . , 32 16 ) . ) Standard deviation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Financial Planning

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

14th edition

978-1305887725, 1305887727, 1305636619, 978-1305636613

More Books

Students also viewed these Finance questions