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Please answer all questions. There should be a total of 11 different answers for questions A, B, C, and D. Expected return and standard deviation.
Please answer all questions. There should be a total of 11 different answers for questions A, B, C, and D.
Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with 11% in asset J, 55% in asset K, and 34% 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? i Data Table (Round to four decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) State of Economy Boom Growth Stagnant Recession Probability of State 0.29 0.37 0.22 0.12 Return on Asset J in State 0.070 0.070 0.070 0.070 Return on Asset K in State 0.230 0.130 0.020 -0.110 Return on Asset L in State 0.280 0.220 0.080 -0.180 Print DoneStep by Step Solution
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