Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 11, 2024

State of Economy Boom Good Poor Bust Rate of Return if State Occurs Probability of State of Economy Stock A Stock B Stock C .20

State of Economy Boom Good Poor Bust Rate of Return if State Occurs Probability of State of Economy Stock A Stock B Stock C .20 .19 .28 .25 .16 .23 .10 . 10 .00 -.09 -.05 .45 --08 -.22 -.10 a. Your portfolio is invested 25 percent each in Stocks A and C and 50 percent in Stock B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.) Variance b-2. What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Recommended Textbook for

Fundamentals of Investments Valuation and Management

Authors: Bradford D. Jordan, Thomas W. Miller

5th edition

978-0077283292

Students also viewed these Finance questions

Question

Milk production. Whether pasteurized or raw, both the European Economic Council (EEC) and the U.S. Food and Drug Administration (USFDA) require that milk sold to consumers contain no more than 10...

Answered: 1 week ago

Question

★★★★★

International Network Solutions provides products and services related to remote access networking. The company has grown rapidly during its first 10 years of operations. As its segment of the...

Answered: 1 week ago

Question

★★★★★

Kirby Corporation exchanged a machine and $9,000 in cash for a new machine. The old machine had a cost of $11,200 and accumulated depreciation of $7,000. The fair value of the old machine was $5,200....

Answered: 1 week ago

Question

★★★★★

Outline the differences between first - party cookies and persistent cookies complete research on these types of cookies to include in your discussion. Why are cookies used? How are cookies used?...

Answered: 1 week ago

Question

★★★★★

Draw a schematic diagram of I.C. engines and name the parts.

Answered: 1 week ago

Question

★★★★★

Find five interesting facts in Tables 1.4 and 1.5. DATA FROM TABLE 1.5 TABLE 1.4 Broad Categories of Exports of Selected Countries, 2010 SITC Code Product United United States Germany Japan China...

Answered: 1 week ago

Question

★★★★★

Use Table 1.1 to find three countries that have gone from being mostly closed to being open from 1980 to 2009. Also, find three countries where the reverse has happened. What has been the implication...

Answered: 1 week ago

Question

★★★★★

Use the data in Table 6.7 to compare U.S. protectionist policies with those of Japan. In what sectors are protection levels relatively equal? Where do they differ? Try to explain these patterns....

Answered: 1 week ago

Question

★★★★★

Customer demand for some finished good is forecast at 1,000 units for January, 2,000 units for February, and 3,000 units for March. If the company that produces this finished good has nothing in...

Answered: 1 week ago

Previous Question Next Question