Question
The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below. State Probability stock A stock B Corp bond Boom
The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below.
State | Probability | stock A | stock B | Corp bond |
Boom | 30% | 12% | 4% | 9% |
Normal | 40% | 5% | 2% | 8% |
Bust | 30% | 2% | -10% | 6% |
Question 13 options:
(Estimated time allowance: 25 minutes). The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below.
State | Probability | stock A | stock B | Corp bond |
Boom | 30% | 12% | 4% | 9% |
Normal | 40% | 5% | 2% | 8% |
Bust | 30% | 2% | -10% | 6% |
You MUST use 4 digits in every calculation you do in order for your answer to be the same as the one in the system. When entering your answer, round to the nearest 0.01% but do not use or enter the sign %
What is the expected return of a portfolio that is 30% in stock A, 60% in stock B and the rest in the corporate bond?
What is the standard deviation of the portfolio that is 30% in stock A, 60% in stock B and the rest in the corporate bond?
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