1. You have $100,000 to invest in a Stock S and Stock T portfolio. The following...
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1. You have $100,000 to invest in a Stock S and Stock T portfolio. The following table contains the essential information for the portfolio: Economic State Boom Normal Recession Weight for each stock Probability of Economy States 0.3 0.6 0.1 Expected Return of Stock S 19% 9% 3% 0.6 Expected Return of Stock T 22% 8% -2% 0.4 a. How much money will you invest in Stock S and Stock T, respectively? Expected Return of Portfolio b. What is the portfolio's expected return in the boom state, normal state, and recession state, respectively? (Hint: No need to consider the probability of each economic state) amit sll of es dein smee ons diw losjong mendasvni wan's gimulava.zi al jedWtill) fawoll lasa sha venerit juropeib of seu mit odt d. Suppose the numb told is decreased by accept the project? find out now c. What are the expected return and standard deviation for the portfolio? (Hint: Considering the probability of each state) 1. You have $100,000 to invest in a Stock S and Stock T portfolio. The following table contains the essential information for the portfolio: Economic State Boom Normal Recession Weight for each stock Probability of Economy States 0.3 0.6 0.1 Expected Return of Stock S 19% 9% 3% 0.6 Expected Return of Stock T 22% 8% -2% 0.4 a. How much money will you invest in Stock S and Stock T, respectively? Expected Return of Portfolio b. What is the portfolio's expected return in the boom state, normal state, and recession state, respectively? (Hint: No need to consider the probability of each economic state) amit sll of es dein smee ons diw losjong mendasvni wan's gimulava.zi al jedWtill) fawoll lasa sha venerit juropeib of seu mit odt d. Suppose the numb told is decreased by accept the project? find out now c. What are the expected return and standard deviation for the portfolio? (Hint: Considering the probability of each state)
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To determine how much money to invest in Stock S and Stock T we need to calculate the allocation based on their weights The weight for Stock S is 06 a... View the full answer
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