Answered step by step
Verified Expert Solution
Question
1 Approved Answer
S Consider the following information: State of Probability of Economy State of Economy Boom Good Poor Bust .22 .38 .28 .12 Stock A .369 .139
S Consider the following information: State of Probability of Economy State of Economy Boom Good Poor Bust .22 .38 .28 .12 Stock A .369 .139 .029 -.129 a. Expected return b. Variance c. Standard deviation a. Your portfolio is invested 28 percent each in A and C and 44 percent in B. What is the expected return of the portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Rate of Return if State Occurs Stock B. .469 .119 .039 -.269 b. What is the variance of this portfolio? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161. c. What is the standard deviation of this portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % Stock C .349 .189 -.094 -.109 %
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