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Please answer all parts of the question P8-21 (similar to) s Question Help Expected return and standard deviation. Use the following information to answer the
Please answer all parts of the question
P8-21 (similar to) s Question Help Expected return and standard deviation. Use the following information to answer the questions: 6 a. What is the expected return of each asset? b. What the variance and the standard deviation of each asset? c. What the expected return of a portfolio with 12% in asset J, 45% in asset K, and 43% in asset L? d. What is the portfolio's variance and standard deviation using the same asset weights from 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 J? (Round to four decimal places.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) State of Economy Boom Growth Stagnant Recession Probability of State 0.28 0.37 0.23 0.12 Return on Asset J in State 0.060 0.060 0.060 0.060 Return on Asset Kin State 0.190 0.100 0.020 -0.130 Return on Asset Lin State 0.270 0.190 0.070 -0.180 Print DoneStep by Step Solution
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