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PLEASE TYPE IT OUT DONT HAND WRITE IT 1a) Given the following probability distribution, what is the expected return of security J? (Expresss your answer
PLEASE TYPE IT OUT DONT HAND WRITE IT
1B)
1a)
Given the following probability distribution, what is the expected return of security J? (Expresss your answer in percentage and round it two decimal places, but do not include the percent sign, %, i.e., 4.65)
State | Probi | rJ | ||
Bad | 0.3 | 10% | ||
Neutual | 0.3 | 12% | ||
Good | 0.4 | 16% |
Given the following probability distribution of security N's return, what is the standard deviation of the security? (Expresss your answer in percentage and round it two decimal places, but do not include the percent sign, %, i.e., 4.65)
State | Probi | rn | ||
Bad | 0.3 | 3% | ||
Neutual | 0.4 | 9% | ||
Good | 0.3 | 16% |
1C)
You are contemplating a $200,000 investment portfolio containing three different assets. You plan to invest $50,000, $90,000, and $60,000 in assets A, B, and C, respectively. A, B, and C have expected annual returns of 12%, 16%, and 6%, respectively. The expected return of this portfolio is ______%? Round it to two decimal places.
1D)
A stock has a beta of 1.2, the expected return on the market is 10 percent, and the risk-free rate is 4.7 percent. The expected return on this stock must be ______ percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))
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