Scenario 1: Weighted 30% Tesla, 20% IBM, 20% GE, and 30% Amazon State of the World...
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Scenario 1: Weighted 30% Tesla, 20% IBM, 20% GE, and 30% Amazon State of the World Below Avg Avg Above Avg Weights Probability of State of World Occuring E(r) Std Deviation Coefficient of Variation 0.3 0.4 0.3 Tesla 0.3 -0.12 0.04 0.1 IBM 0.2 0.01 0.06 0.09 1) Did the portfolio risk increase or decrease between scenarios 1 and 2? GE 2) Provide a brief explanation of why did the portfolio risk increase or decrease? 0.2 -0.01 0.09 0.07 0.3 Amazon -0.02 0.05 0.11 Portfolio Scenario 1: Weighted 30% Tesla, 20% IBM, 20% GE, and 30% Amazon State of the World Below Avg Avg Above Avg Weights Probability of State of World Occuring E(r) Std Deviation Coefficient of Variation 0.3 0.4 0.3 Tesla 0.3 -0.12 0.04 0.1 IBM 0.2 0.01 0.06 0.09 1) Did the portfolio risk increase or decrease between scenarios 1 and 2? GE 2) Provide a brief explanation of why did the portfolio risk increase or decrease? 0.2 -0.01 0.09 0.07 0.3 Amazon -0.02 0.05 0.11 Portfolio
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COMPUTATION OF RISK RETURN OF INDIVIDUAL STOCK AND PORTFOLIO Given The data regarding the stocks are ... View the full answer
Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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