Expected retun and standard deviation. Use the following information to answer the questions:a. What is the expected return of each asset?b. What is the variance and the standard deviationc. What is the expected return of a portfolio with 1 1 Data Tabled. What is the portfolio's variance and standard de- XHint Make sure to round all intermediate calculatioSwers yo(Click on the following icon D in order to copy its contents into a spreadsheet.)a. What is the expected return of asset J?(Round to four decimal places.)Return onReturn onReturn onProbabilityof StateState ofAsset J inAsset KinState0.2000.1400.040Asset L inEconomyStateStateВoom0.280.0700.2600.180Growth0.370.250.070Stagnant0.0700.060-0.210Recession0.100.070-0.100PrintDone Expected return and standard deviation. Use the following information to answer the questions:a. What is the expected retum of each asset?b. What is the variance and the standard deviation of each asset?c. What is the expected return of a portfolio with 11% in asset J, 49% in asset K, and 40% in asset L?d. What is the portfolio's variance and standard deviation using the same asset weights from part (c)?Hint Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.a. What is the expected return of asset J?(Round to four decimal places.)

a. What is the expected return of each asset? b. What is the variance and the standard deviation c. What is the expected return of a portfolio with 1 d. What is the portfolio's variance and standard de Data Table Hint Make sure to round all intermediate calculatio (Click on the following icon D in order to copy its contents into a spreadsheet.) a. What is the expected return of asset J? (Round to four decimal places.) Roturn on Return on Return on State of Economy Boom Probability of State Asset J in State Asset K in Stale Asset L in State 0.28 0.070 0.260 0.180 0.200 Growth 0.37 0.070 0.140 Stagnant 0.25 0.070 0.040 0.060 Recession 0.10 0.070 <-0.100 -0.210

a. What is the expected return of each asset? b. What is the variance and the standard deviation c. What is the expected return of a portfolio with 1 d. What is the portfolio's variance and standard de Data Table Hint Make sure to round all intermediate calculatio (Click on the following icon D in order to copy its contents into a spreadsheet.) a. What is the expected return of asset J? (Round to four decimal places.) Roturn on Return on Return on State of Economy Boom Probability of State Asset J in State Asset K in Stale Asset L in State 0.28 0.070 0.260 0.180 0.200 Growth 0.37 0.070 0.140 Stagnant 0.25 0.070 0.040 0.060 Recession 0.10 0.070 <-0.100 -0.210

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6P

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