Consider the following information: Rate of Return if State Occurs Probability of State of Economy State of Economy Stock A Stock B Stock C Вoom .15 .35 .40 .28 Good .45 .16 .17 .09 Рor .30 -.01 -.03 .01 Bust .10 -10 -12 -.09 а. 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 % b-1. Variance b-2. Standard deviation %
Consider the following information: Rate of Return if State Occurs Probability of State of Economy State of Economy Stock A Stock B Stock C Вoom .15 .35 .40 .28 Good .45 .16 .17 .09 Рor .30 -.01 -.03 .01 Bust .10 -10 -12 -.09 а. 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 % b-1. Variance b-2. Standard deviation %
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 9PROB
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