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Consider the following information: (a) Your portfolio is invested 30 percent each in A and C and 40 percent in

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Consider the following information:
Consider the following information: (a) Your portfolio is invested


(a) Your portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio?

(b) What is the variance of this portfolio? The standarddeviation?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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State of Rate of Returnf Stäte Occurs Probability of Economy State otEçonomyStockA Stock BStock C Boom Good Pocr Bust 15 45 35 05 .30 .12 .01 -.20 .45 .10 -.15 .30 .33 15 05 .09

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a This portfolio does not have an equal weight in each asset We first need to find the return of the …View the full answer


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Essentials Of Corporate Finance

Essentials Of Corporate Finance

ISBN: 9780073405131

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: April 24, 2012 07:43:15
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