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Problem 1 3 - 2 3 Portfolio Returns and Deviations [ LO 2 ] Consider the following information about three stocks: table [ [
Problem Portfolio Returns and Deviations LO
Consider the following information about three stocks:
tableProbability of State,Rate of Return if State OccursState of Economy,of Economy,Stock AStock BStock CBoomNormalBust
a If your portfolio is invested percent each in A and and percent in what is the portfolio expected return? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
a What is the variance? Do not round intermediate calculations and round your answer to decimal places, eg
a What is the standard deviation? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
b If the expected Tbill rate is percent, what is the expected risk premium on the portfolio? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
c If the expected inflation rate is percent, what are the approximate and exact expected real returns on the portfolio? Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
c What are the approximate and exact expected real risk premiums on the portfolio? Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
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