Consider the following information: State of Economy Boom Good Poor Probability of State of Economy 0.20...
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Consider the following information: State of Economy Boom Good Poor Probability of State of Economy 0.20 0.50 0.30 Rate of Return Stock A Stock B Stock C 0.10 0.10 0.50 0.10 0.10 0.20 0.10 -0.08 0.40 Portfolio's Rate of Return a. Your portfolio is invested 30 percent in A, 30 percent in B and 40 percent in C. What is your portfolio return for each state (in percent)? Be Beam= Be Good = Be poat = b. What is the expected return of the portfolio (in percent)? C. What is the variance of this portfolio? d. What is the standard deviation of this portfolio (in percent)? Consider the following information: State of Economy Boom Good Poor Probability of State of Economy 0.20 0.50 0.30 Rate of Return Stock A Stock B Stock C 0.10 0.10 0.50 0.10 0.10 0.20 0.10 -0.08 0.40 Portfolio's Rate of Return a. Your portfolio is invested 30 percent in A, 30 percent in B and 40 percent in C. What is your portfolio return for each state (in percent)? Be Beam= Be Good = Be poat = b. What is the expected return of the portfolio (in percent)? C. What is the variance of this portfolio? d. What is the standard deviation of this portfolio (in percent)?
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To calculate the portfolio return expected return variance and standard deviation well use the given information about the state of the economy the ra... View the full answer
Related Book For
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
Posted Date:
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