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 of State of Economy Stock A Stock B Stock C Economy .25 Вoom .21 .33 .55 Normal .60 .17 .11 .09 Bust .15 .00 -.21 -45 a-1.If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a- What is the variance? (Do not round intermediate calculations and round 2. your answer to 5 decimal places, e.g., .16161.) a- What is the standard deviation? (Do not round intermediate calculations and enter 3. your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.80 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-1.If the expected inflation rate is 3.30 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.., 32.16.) c- What are the approximate and exact expected real risk premiums on the portfolio? 2. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a- Portfolio expected return 13.70 % 1. a- Variance 0.49689 2. a- Standard deviation 22.00 X % 3. b. Expected risk premium 9.90 X % C- Approximate expected real return 1. 10.20 X % Exact expected real return 9.86 X % Approximate expected real risk premium Exact expected real risk premium C- 6.40 X % 2. 6.18 X % Consider the following information about three stocks: Rate of Return If State Occurs Probability of State of State of Economy Stock A Stock B Stock C Economy .25 Вoom .21 .33 .55 Normal .60 .17 .11 .09 Bust .15 .00 -.21 -45 a-1.If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a- What is the variance? (Do not round intermediate calculations and round 2. your answer to 5 decimal places, e.g., .16161.) a- What is the standard deviation? (Do not round intermediate calculations and enter 3. your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 3.80 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-1.If the expected inflation rate is 3.30 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.., 32.16.) c- What are the approximate and exact expected real risk premiums on the portfolio? 2. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a- Portfolio expected return 13.70 % 1. a- Variance 0.49689 2. a- Standard deviation 22.00 X % 3. b. Expected risk premium 9.90 X % C- Approximate expected real return 1. 10.20 X % Exact expected real return 9.86 X % Approximate expected real risk premium Exact expected real risk premium C- 6.40 X % 2. 6.18 X %
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Related Book For
Human Anatomy and Physiology
ISBN: 978-0321927040
10th edition
Authors: Elaine N. Marieb, Katja Hoehn
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