Question

Round to four decimal​ places.

Expected return and standard
deviation
a. What is the expected return of asset J?
Return on
Asset J in
Return on
Asset K in
Return on
State of
Economy
Probability
Asset L in
of State
State
State
State
Boom
0.26
0.050
0.190
0.250
Growth
0.38
0.050
0.100
0.190
Stagnant
0.21
0.050
0.030
0.080
Recession
0.15
0.050
- 0.070
- 0.190
Expand
Transcribed Image Text

Expected return and standard deviation a. What is the expected return of asset J? Return on Asset J in Return on Asset K in Return on State of Economy Probability Asset L in of State State State State Boom 0.26 0.050 0.190 0.250 Growth 0.38 0.050 0.100 0.190 Stagnant 0.21 0.050 0.030 0.080 Recession 0.15 0.050 - 0.070 - 0.190

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