Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show all steps 13. Consider the following probability distribution for stocks A and B: State 899 795 Probability 0.10 0.20 0.20 0.30 0.20 Return

please show all steps image text in transcribed
13. Consider the following probability distribution for stocks A and B: State 899 795 Probability 0.10 0.20 0.20 0.30 0.20 Return on Stock A Return on Stock B 1096 13% 12% 6% 14% 9% 15% 8% The expected rates of return of stocks A and B are and respectively. A. 13.2%9% B. 14%; 10% C. 13.2%; 7.7% D. 7.7%; 13.2% E. 14%, 11.5% 14. Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 0.10 10% 8% 0.20 13% 796 0.20 1296 0.30 1496 9% 0.20 1596 8% 696 If you invest 40% of your money in A and 60% in B, what would be your portfolio's expected rate of return and standard deviation? A. 9.9% 3%

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

Financing Sustainable Development In Africa

Authors: Uchenna R. Efobi, Simplice Asongu

1st Edition

3319788426,3319788434

More Books

Students also viewed these Finance questions

Question

Output :program rogram ogram gram ram am m

Answered: 1 week ago

Question

Who has to approve implementing a composting program?

Answered: 1 week ago