Question: Please answer b-1 and b-2. Thank you! Consider the following information: State of Economy Boom Good Poor Bust a. Probability of State of Economy a.
Consider the following information: State of Economy Boom Good Poor Bust a. Probability of State of Economy a. Expected return b-1. Variance b-2. Standard deviation 15 .45 .30 10 Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 10.26% Rate of Return if State Occurs Stock A Stock B Stock C .35 .40 .28 16 17 .09 -.01 -.03 .01 -.10 -.12 -.09 %
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