b) c) What is the expected return for A? For B? What is the standard deviation...
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b) c) What is the expected return for A? For B? What is the standard deviation for A? For B? What is the expected return on a portfolio of A and B that is 30% invested in A and the remainder in B? State of the Economy Boom Growth Normal Recession Probability of State of the Economy 0.40 0.20 0.20 0.20 Return on A % 10 -4 24 16 Return on B % 4 0 16 20 b) c) What is the expected return for A? For B? What is the standard deviation for A? For B? What is the expected return on a portfolio of A and B that is 30% invested in A and the remainder in B? State of the Economy Boom Growth Normal Recession Probability of State of the Economy 0.40 0.20 0.20 0.20 Return on A % 10 -4 24 16 Return on B % 4 0 16 20
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a To calculate the expected return for A and B we multiply the probability of each state of the econ... View the full answer
Related Book For
Essentials Of Statistics For Business & Economics
ISBN: 9780357045435
9th Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Posted Date:
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