FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following table reports forecasted returns for the stock of two different companies under three possible states of the economy: State Probability Stock A Stock

image text in transcribed

The following table reports forecasted returns for the stock of two different companies under three possible states of the economy: State Probability Stock A Stock B Expansion 35% 12.83% 17.14% Average 55% 9.12% 6.90% Recession 10% -0.84% -5.39% What is the standard deviation on a portfolio that consists of 25% of funds allocated to Stock A and the rest in Stock B? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_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

Foreign Investment And Spillovers

Foreign Investment And Spillovers

Authors: Magnus Blomstrom

1st Edition

1138025976,1317685121

More Books

Students also viewed these Finance questions

Question

★★★★★
(a) Show that the absolute value function F(x) = |x| is continuous everywhere. (b) Prove that if f is a continuous function on an interval, then so is | f |. (c) Is the converse of the statement in...

Answered: 1 week ago

Question

★★★★★
Richard donates publicly traded Gold Company stock with a basis of $1,000 and a fair market value of $15,000 to the college he attended, which is considered a public charity. Richard has owned the...

Answered: 1 week ago

Question

★★★★★
=+1. nwhich of the following cases is advertising likely to be economically useful? Economically wasteful? Explain your answer.

Answered: 1 week ago

Question

★★★★★
Sales for the past 12 months at Dalworth Company are given here. a. Use a three month moving average to forecast the sales for the months May through December. b. Use a four-month moving average to...

Answered: 1 week ago

Question

★★★★★
You found an investment account that pays 11% annually for the first 5 years then 9% annually for the next 4 years. If you invest $7,000 in this account, how much total interest will you earn

Answered: 1 week ago

Question

★★★★★
ABC Company's budgeted production calls for: . 6.600 units to be manufactured in October 2020, and 9.600 units to be manufactured in November 2020. Other information is as follows: Each unit requires...

Answered: 1 week ago

Question

★★★★★
Descent, Inc., produces a variety of climbing and mountaineering equipment. One of its products is a traditional three-strand climbing rope. An important characteristic of any climbing rope is its...

Answered: 1 week ago

Question

★★★★★
1. What is the resistivity of a material with a resistance of 10 2, length of 10m, and cross sectional area of 1x10-6 m? 2. An electrical engineer wants to have a copper wire with resistance equal to...

Answered: 1 week ago

Question

★★★★★
1. Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni's owners. For each of the...

Answered: 1 week ago

Question

★★★★★
Donald's employer fires Donald after only four months on the job, a clear breach of Donald's written twelve-month employment contract. Donald is entitled to recover as damages: nothing as Donald is...

Answered: 1 week ago

Question

★★★★★
Your team is tasked with mapping out and identifying major gaps and redundancies in the program 's organizational structure , roles and responsibilities . Which tool should you apply to analyze this...

Answered: 1 week ago

Previous Question Next Question