Question: 9. value 1.00 points Problem 11-17 Portfolio Analysis (L03) Scenario Recession Normal economy Boom Probability 20 60 20 Rate of Return Stocks Bonds -5% -14%
9. value 1.00 points Problem 11-17 Portfolio Analysis (L03) Scenario Recession Normal economy Boom Probability 20 60 20 Rate of Return Stocks Bonds -5% -14% +15 +8 +25 +4 Consider a portfolio with weights of .60 in stocks and 40 in bonds. * What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.) Rate of Return % Scenario Recession Normal economy Boom b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected rate of return Standard deviation What is the expected rate of return and standard deviation on an all-stock portfolio? An all-bond portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected rate of return Standard deviation 100% stock % 9 100% bond %
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