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scenario: Bull market:Probability of occuring is 0.25, return on asset a=40% average market:Probability of occuring is 0.50,return on asset a=25% Bear market:Probability of occuring is
scenario:
Bull market:Probability of occuring is 0.25, return on asset a=40%
average market:Probability of occuring is 0.50,return on asset a=25%
Bear market:Probability of occuring is 0.25, return on Asset a= -15%
a)calculate the expected rate of return
b)calculate the standard deviation of the expected return
c)The expected return for Asset B is 18.32% and the standard deviation for asset B is 19.51%.Based on the results from A) and B), which asset would you add to your portfolio?
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