Question
Use the information in the table below to answer the next seven multiple choice questions. State of Nature Probability Return on A Return on B
Use the information in the table below to answer the next seven multiple choice questions.
State of Nature | Probability | Return on A | Return on B |
I | 0.3 | 7% | 12% |
II | 0.2 | 9% | 5% |
III | 0.5 | 14% | 15% |
The correlation between A and B is 0.25. The portfolio weight of A is 30%. The portfolio weight of B is 70%.
The expected return in percent for investment A is?
The standard deviation of returns for investment A is?
The expected return in percent for investment B is?
The standard deviation of returns for investment B is?
The expected return in percent for a portfolio of 30% investment A and 70% investment B is?
The covariance between investment A and investment B is?
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