Expected retun and standard deviation Use the following information to answer the questions: a. What is...
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Expected retun and standard deviation Use the following information to answer the questions: a. What is the expected returm of each asset? b. What is the variance and the standard deviation of each asset? c. What is the expected returm of a portfolio with 11% in asset J, 48% in asset K, and 41% in asset L? d. What is the portfolio's variance and standard deviation using the same asset woights from part (c)? Hint Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesin ofter each answor box, only apply for the answers you will type. Data table (Click on the following icon a in order to copy its contents into a spreadsheet) Retum on Asset J in State 0.070 Retum on Rotum on Asset L in Stote of Economy Probablity of Stute 0 25 Asot Kin Suite State 0.300 0.220 0.130 Boom Growth Stagnant 0.39 0.070 0.210 0 070 0 070 0.25 0.040 0.090 Recession 0.11 -0.150 -0.190 Expected retun and standard deviation Use the following information to answer the questions: a. What is the expected returm of each asset? b. What is the variance and the standard deviation of each asset? c. What is the expected returm of a portfolio with 11% in asset J, 48% in asset K, and 41% in asset L? d. What is the portfolio's variance and standard deviation using the same asset woights from part (c)? Hint Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesin ofter each answor box, only apply for the answers you will type. Data table (Click on the following icon a in order to copy its contents into a spreadsheet) Retum on Asset J in State 0.070 Retum on Rotum on Asset L in Stote of Economy Probablity of Stute 0 25 Asot Kin Suite State 0.300 0.220 0.130 Boom Growth Stagnant 0.39 0.070 0.210 0 070 0 070 0.25 0.040 0.090 Recession 0.11 -0.150 -0.190
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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