Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

WOULOU Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A Stock C Stock B

image text in transcribed
WOULOU Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A Stock C Stock B .44 Boom Good .15 35 .34 18 .55 Poor 1.09 -.04 Bust .25 .05 -.02 -12 -12 -.05 -30 a. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Expected return to b-1. Variance b-2. Standard deviation

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

Step: 3

blur-text-image

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

Distressed Investment Banking To The Abyss And Back

Authors: Peter S Kaufman, Henry F Owsley

2nd Edition

1587983044, 978-1587983047

More Books

Students also viewed these Finance questions