Consider the following information about three stocks: Rate of Return if State Occurs Probability of State...
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Consider the following information about three stocks: Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Stock C Boom 30 36 48 .60 Normal Bust 40 .30 15 13 11 06 28 48 a-1. If your portfolio is invested 25 percent each in A and B and 50 percent in C, w the portfolio expected return? (Do not round intermediate calculations and your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. What is the variance? (Do not round intermediate calculations and round you answer to 5 decimal places, e.g., .16161.) a-3. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.50 percent, what is the expected risk premium o portfolio? (Do not round intermediate calculations and enter your answer as percent rounded to 2 decimal places. e.a.. 32.16.) Consider the following information about three stocks: Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Stock C Boom 30 36 48 .60 Normal Bust 40 .30 15 13 11 06 28 48 a-1. If your portfolio is invested 25 percent each in A and B and 50 percent in C, w the portfolio expected return? (Do not round intermediate calculations and your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. What is the variance? (Do not round intermediate calculations and round you answer to 5 decimal places, e.g., .16161.) a-3. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.50 percent, what is the expected risk premium o portfolio? (Do not round intermediate calculations and enter your answer as percent rounded to 2 decimal places. e.a.. 32.16.)
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