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You have a portfolio made up of three stocks. Tesla is 60% of the portfolio, IBM is 20%, and GE is 20%. There are three possible states of the world with probability of occurrence given below. For this problem find the following: 1. The expected return, the Standard Deviation, and the Coefficent of Variation for Tesla 2. The expected return, the Standard Deviation, and the Coefficent of Variation for the portfolio 20 20 60 IBM GE Portfolio State of the World Tesla Below Avg 30 -0.05 0.01 -0.01 Avg 40 0.01 0.6 0.03 Above Avg 30 0.04 0.09 0.07 E(r) Std Deviation Coefficient of Variation You have a portfolio made up of three stocks. Tesla is 60% of the portfolio, IBM is 20%, and GE is 20%. There are three possible states of the world with probability of occurrence given below. For this problem find the following: 1. The expected return, the Standard Deviation, and the Coefficent of Variation for Tesla 2. The expected return, the Standard Deviation, and the Coefficent of Variation for the portfolio 20 20 60 IBM GE Portfolio State of the World Tesla Below Avg 30 -0.05 0.01 -0.01 Avg 40 0.01 0.6 0.03 Above Avg 30 0.04 0.09 0.07 E(r) Std Deviation Coefficient of Variation
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Related Book For
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
Posted Date:
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