Question
State Probability of Outcome Return on Security 1 Return on Security 2 Return on Security 3 1 .14 .205 .205 .055 2 .36 .155 .105
State | Probability of Outcome | Return on Security 1 | Return on Security 2 | Return on Security 3 |
1 | .14 | .205 | .205 | .055 |
2 | .36 | .155 | .105 | .105 |
3 | .36 | .105 | .155 | .155 |
4 | .14 | .055 | .055 | .205 |
A-1) What is the expected return of each security? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Security1 %
Security2 %
Security3 %
A-2. What is the standard deviation of each security? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Security 1 %
Security 2 %
Security 3 % .
B-1) What are the covariances between the pairs of securities? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 5 decimal places, e.g., 32.16162.)
Security 1 & 2
Security 1 & 3
Security 2 & 3
B-2) What are the correlations between the pairs of securities? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)
Security 1 & 2
Security 1 & 3
Security 2 & 3
C-1What is the expected return of a portfolio with half of its funds invested in Security 1 and half in Security 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Security 1 & 2 %
C-2) What is the standard deviation of a portfolio with half of its funds invested in Security 1 and half in Security 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Security 1 & 2 %
D-1) What is the standard deviation of a portfolio with half of its funds invested in Security 1 and half in Security 3? Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Security 1 & 3 %
D-2) What is the expected return of a portfolio with half of its funds invested in Security 1 and half in Security 3? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Security 1 & 3 %
PLEASE SHOW ALL EXCELL CALCULATIONS ANSWERS
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