a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calculations, Round the final answer to 6 decimal places.) Variance
a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calculations, Round the final answer to 6 decimal places.) Variance
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
![Consider the following information:
State of
Economy
Probability of
State of Economy
0.70
0.30
Boom
Bust
Rate of Return if State Occurs
Stock B
Stock C
9.21
0.39
0.02
-0.07
Stock A
0.14
0.11
a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations.
Round the final answer to 2 decimal places.)
Expected return
b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calculations, Round
the final answer to 6 decimal places.)
Variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc5dd71d-51fa-441f-9ebc-9ba33f9dfb0d%2F97fc9eb2-d357-4ebe-80ac-7a8ae49ddfdd%2Fqbsinqo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following information:
State of
Economy
Probability of
State of Economy
0.70
0.30
Boom
Bust
Rate of Return if State Occurs
Stock B
Stock C
9.21
0.39
0.02
-0.07
Stock A
0.14
0.11
a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations.
Round the final answer to 2 decimal places.)
Expected return
b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calculations, Round
the final answer to 6 decimal places.)
Variance
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