Consider the following information: b. State of Economy Stock A Boom Bust Probability of State of...
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Consider the following information: b. State of Economy Stock A Boom Bust Probability of State of Economy Stock B .64 .36 Rate of Return if State Occurs Stock C .11 .18 .20 .10 .38 -.04 What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) Consider the following information: b. State of Economy Stock A Boom Bust Probability of State of Economy Stock B .64 .36 Rate of Return if State Occurs Stock C .11 .18 .20 .10 .38 -.04 What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.)
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a To calculate the expected return of an equally weighted portfolio you need to calculate the weight... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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