{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-25T15:08:35-04:00", "answer_date": "2024-05-25 15:08:35", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1693496", "url": "\/study-help\/questions\/probability-of-consider-the-following-information-about-three-stocks-rate-1693496", "question_creation_date_js": "2024-05-25T15:08:35-04:00", "question_creation_date": "May 25, 2024 03:08 PM", "meta_title": "[Solved] Probability of Consider the following inf | SolutionInn", "meta_description": "Answer of - Probability of Consider the following information about three stocks: Rate of Return if State Occurs State of State of | SolutionInn", "meta_keywords": "probability,information,three,stocks,rate,return,state,occurs,economy,boom,stock,0.20", "question_title_h1": " Probability of Consider the following information about three stocks: Rate of Return if State Occurs State of State of Economy Boom Economy Stock A", "question_title": " Probability of Consider the following information about three stocks: Rate of", "question_title_for_js_snippet": "Probability of Consider the following information about three stocks Rate of Return if State Occurs State of State of Economy Boom Economy Stock A Stock B 0 20 0 20 0 32 Normal Bust 0 45 0 18 0 16 0 35 0 02 0 34 Stock C 0 54 0 14 0 42 a 1 If your portfolio is invested 40 each in A and B and 20 in C, what is the portfolio expected return (Do not round intermediate calculations Enter the answer as a percent rounded to 2 decimal places ) 5 Portfolio expected return a 2 What is the variance (Do not round intermediate calculations Round the final answer to 8 decimal places ) Variance a 3 What is the standard deviation (Do not round intermediate calculations Enter the answer as a percent rounded to 2 decimal places ) Standard deviation b If the expected T bill rate is 4 00 , what is the expected risk premium on the portfolio (Do not round intermediate calculations Enter the answer as a percent rounded to 2 decimal places ) Expected risk premium c 1 If the expected inflation rate is 2 00 , what are the approximate and exact expected real returns on the portfolio (Do not round intermediate calculations Enter the answers as a percent rounded to 2 decimal places )", "question_description": "\"image", "transcribed_text": "Probability of Consider the following information about three stocks: Rate of Return if State Occurs State of State of Economy Boom Economy Stock A Stock B 0.20 0.20 0.32 Normal Bust 0.45 0.18 0.16 0.35 0.02 -0.34 Stock C 0.54 0.14 -0.42 a-1. If your portfolio is invested 40% each in A and B and 20% in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) 5 Portfolio expected return % a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.) Variance a-3. What is the standard deviation? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Standard deviation % b. If the expected T-bill rate is 4.00 %, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Expected risk premium % c-1. If the expected inflation rate is 2.00 %, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter the answers as a percent rounded to 2 decimal places.)", "related_book": { "title": "The Company Valuation Playbook Invest With Confidence", "isbn": "1838470816, 978-1838470814", "edition": "1st Edition", "authors": "Charles Sunnucks", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2024\/01\/659e8d7741ff1_719659e8d773d380.jpg", "uri": "\/textbooks\/the-company-valuation-playbook-invest-with-confidence-1st-edition-978-1838470814-187563", "see_more_uri": "" }, "free_related_book": { "isbn": "3036568085", "uri": "\/textbooks\/advances-in-artificial-intelligence-methods-applications-in-industrial-control-systems-1st-edition-9783036568089", "name": "Advances In Artificial Intelligence Methods Applications In Industrial Control Systems", "edition": "1st Edition" }, "question_posted": "2024-05-25 15:08:35", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/consider-a-set-of-documents-assume-that-all-documents-have", "description": "Consider a set of documents. 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