Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following data to answer questions 1, 2, 3, and 4 Probability matrix Returns RB = 50% RB -20% RB-30% R4 = -10% 40%

image text in transcribedimage text in transcribed

Use the following data to answer questions 1, 2, 3, and 4 Probability matrix Returns RB = 50% RB -20% RB-30% R4 = -10% 40% 0% 0% R4 = 20% 0% 30% 0% RA = 30% 0% 0% 30% Note : You have to show full calculations or else the answer will be disregarded. 1- What is the expected RA? (5 pts ) a- 10% b- 13% C- 12% d- 11% 2- What is the expected RB ? ( 2.5 pts ) a- 18% b- 16% C- 17% d- 15% 3-What is the standard deviation of Stock B closest to? ( 5 pts ) 3-What is the standard deviation of Stock B closest to? ( 5 pts ) a- 0.1118 b- 0.2218 C- 0.4418 d- 0.3318 4-What is the standard deviation of the portfolio consisting of 50% A and 50% B? (2.5 pts ) a- 24.78% b- 25.38% C- 21.32% d- Can't be determined as there is a missing information Use the following data to answer questions 1, 2, 3, and 4 Probability matrix Returns RB = 50% RB -20% RB-30% R4 = -10% 40% 0% 0% R4 = 20% 0% 30% 0% RA = 30% 0% 0% 30% Note : You have to show full calculations or else the answer will be disregarded. 1- What is the expected RA? (5 pts ) a- 10% b- 13% C- 12% d- 11% 2- What is the expected RB ? ( 2.5 pts ) a- 18% b- 16% C- 17% d- 15% 3-What is the standard deviation of Stock B closest to? ( 5 pts ) 3-What is the standard deviation of Stock B closest to? ( 5 pts ) a- 0.1118 b- 0.2218 C- 0.4418 d- 0.3318 4-What is the standard deviation of the portfolio consisting of 50% A and 50% B? (2.5 pts ) a- 24.78% b- 25.38% C- 21.32% d- Can't be determined as there is a missing information

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

Consolidation In The European Financial Industry

Authors: R. Bottiglia, E. Gualandri , G. Mazzocco

1st Edition

0230233228,0230275028

More Books

Students also viewed these Finance questions