Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability...

 

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Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy .72 .28 Stock A .10 .29 Stock B .04 Stock C .40 .35 -.20 a. What is the expected return on an equally weighted portfolio of these three stocks? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the variance of a portfolio invested 27 percent each in A and B and 46 percent in C? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161. a. Expected return b. Variance of portfolio % Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy .72 .28 Stock A .10 .29 Stock B .04 Stock C .40 .35 -.20 a. What is the expected return on an equally weighted portfolio of these three stocks? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the variance of a portfolio invested 27 percent each in A and B and 46 percent in C? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161. a. Expected return b. Variance of portfolio %

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Portfolio Analysis a Expected Return on an Equally Weighted Portfolio Calculate the expected return ... View the full answer