The table below shows the expected rates of return for three stocks and their weights in some portfolio: State Recession Normal Boom 4+ decimals Submit Portfolio weights Probability 4+ decimals 0.2 0.5 0.3 Submit Stock A 0.5 Part 1 What is the expected portfolio return? 0.01 0.04 0.09 Stock B 0.2 Expected returns Stock C 0.3 Part 2 What is the standard deviation of the portfolio returns? 0.04 -0.06 0.08 0.01 0.1 0.09

The table below shows the expected rates of return for three stocks and their weights in some portfolio: State Recession Normal Boom 4+ decimals Submit Portfolio weights Probability 4+ decimals 0.2 0.5 0.3 Submit Stock A 0.5 Part 1 What is the expected portfolio return? 0.01 0.04 0.09 Stock B 0.2 Expected returns Stock C 0.3 Part 2 What is the standard deviation of the portfolio returns? 0.04 -0.06 0.08 0.01 0.1 0.09

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 13QTD

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