Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 13 1 pts Let's say Tim invested 40% of his money to buy ABC Corp.'s shares and 60% of his money to buy DEF
Question 13 1 pts Let's say Tim invested 40% of his money to buy ABC Corp.'s shares and 60% of his money to buy DEF Corp.'s shares in 2013. From 2014 to 2017, ABC Corp. generated the total return percentage of 11%, 13%, 8%, 12%. DEF Corp. generated the total return percentage of -2%, 12%, -3%, and 19% during the same time period. What is the standard deviation of the portfolio's returns from 2014 to 2017? 7.14% 0.51% 6.24% 0.39% Question 14 1 pts Paulie invested $20,000 in ABC Corp. and $40,000 in DEF Corp. the return percentages of ABC Corp. and DEF Corp. will vary as shown in the information below: State of Economy Probability of State DEF Return ABC Return oom 35% 15% 7% Good 25% 12% 7% 30% 8% 6% Poor -10% 6% Bust 10% What is the expected return of Paulie's investment? 6.25% 7.62% 6.42% 9.65%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started