Question: Check Problem 13-23 Portfolio Returns and Deviations (LO1, 2) Consider the following information about three stocks: State of Economy Boom Normal Bust Probability of State


Check Problem 13-23 Portfolio Returns and Deviations (LO1, 2) Consider the following information about three stocks: State of Economy Boom Normal Bust Probability of State of Economy 0.30 0.40 0.30 Rate of Return if State Occurs Stock A Stock B Stock C 0.36 0.48 0.60 0.15 9.13 0.11 0.06 -0.28 -0.48 a-1. If your portfolio is invested 25% each in A and B and 50% in C what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Portfolio expected return 11.54% a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.) Variance 2-3. What is the standard deviation? (Do not round Intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Standard deviation hun klant in the relaterat Check my work a 3. What is the standard deviation (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Standard deviation % b. If the expected T-bill rate is 3.60%, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.) Expected risk premium % C-1. If the expected inflation rate is 2.50%, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter the answers as a percent rounded to 2 decimal places.) Approximate expected real return Exact expected real return : c-2. What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations. Enter the answers as a percent rounded to 2 decimal places.) % Approximate expected real risk premium Exact expected real risk premium
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