Question
Rate of Return Scenario Probability Stocks Bonds Recession 0.25 -3% 16% Normal Economy 0.6 12% 8% Boom 0.15 20% 6% a) calculate the expected rate
| Rate of Return | |||
| Scenario | Probability | Stocks | Bonds |
| Recession | 0.25 | -3% | 16% |
| Normal Economy | 0.6 | 12% | 8% |
| Boom | 0.15 | 20% | 6% |
a) calculate the expected rate of returns for stocks and bonds.
b) calculate the standard deviation for stocks and bonds.
c) calculate the expected rate of return and the standard deviation of a portfolio consisting of 70% of stocks and 30% of bonds.
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Essays In Honor Of William N Kinnard Jr Research Issues In Real Estate Volume 9
Authors: C.F. Sirmans , Elaine Worzala
1st Edition
1402075162,1441989536
