An investor bought 700 shares stock A and 300 shares of stock B.. At time t=0...
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An investor bought 700 shares stock A and 300 shares of stock B.. At time t=0 the price of stock A was So(0) 50, price of stock B was S₁ (0) = 25. at time t = 1 there were three possible scenarios w₁, 2 and w3 with probabilities 0.1, 0.4 and 0.5 respectively. Their returns were as follows: for scenario w₁ TA=03, TB = 0.6, for w₂ TA = 0.3, TB = 0.4, and for w3 TA = 0.5, TB = 0.3, . Calculate the following: = (c) Calculate the portfolio mean Tp. (c) Calculate the portfolio variance o An investor bought 700 shares stock A and 300 shares of stock B.. At time t=0 the price of stock A was So(0) 50, price of stock B was S₁ (0) = 25. at time t = 1 there were three possible scenarios w₁, 2 and w3 with probabilities 0.1, 0.4 and 0.5 respectively. Their returns were as follows: for scenario w₁ TA=03, TB = 0.6, for w₂ TA = 0.3, TB = 0.4, and for w3 TA = 0.5, TB = 0.3, . Calculate the following: = (c) Calculate the portfolio mean Tp. (c) Calculate the portfolio variance o
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SOLUTION a Stock holdings Stock A 700 shares at 50 per share initiall... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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