Consider the following information on a portfolio of three stocks: State of Probability of State Stock...
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Consider the following information on a portfolio of three stocks: State of Probability of State Stock A Rate of Economy of Economy Return Stock B Rate of Return Stock C Rate of Return Boom Normal 13 06 36 46 Bust 51 36 14 26 24 29 -125 -.39 a. If your portfolio is invested 44 percent each in A and B and 12 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? Note: Do not round Intermediate calculations. Round your verlence answer to 5 decimal places, e.g., .16161. Enter your other answers as a percent rounded to 2 decimal places, e.g.. 32.16. b. If the expected T-bill rate is 4.45 percent, what is the expected risk premium on the portfolio? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Expected return Variance Standard deviation b. Expected risk premium % 06 196 Consider the following information on a portfolio of three stocks: State of Probability of State Stock A Rate of Economy of Economy Return Stock B Rate of Return Stock C Rate of Return Boom Normal 13 06 36 46 Bust 51 36 14 26 24 29 -125 -.39 a. If your portfolio is invested 44 percent each in A and B and 12 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? Note: Do not round Intermediate calculations. Round your verlence answer to 5 decimal places, e.g., .16161. Enter your other answers as a percent rounded to 2 decimal places, e.g.. 32.16. b. If the expected T-bill rate is 4.45 percent, what is the expected risk premium on the portfolio? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Expected return Variance Standard deviation b. Expected risk premium % 06 196
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