Consider the following information: State of Probability of Economy State of Economy Rate of Return if...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider the following information: State of Probability of Economy State of Economy Rate of Return if State Occurs Stock A Boom Stock B 17 Stock C .364 Good .464 .43 .344 .134 Poor .114 Bust .33 .07 .184 .024 -.124 .034 -.089 -.264 -.104 a. Your portfolio is invested 28 percent each in A and C and 44 percent in B. What is the expected return of the portfolio? 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 this portfolio? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161. c. What is the standard deviation of this 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 b. Variance c. Standard deviation % % Consider the following information: State of Probability of Economy State of Economy Rate of Return if State Occurs Stock A Boom Stock B 17 Stock C .364 Good .464 .43 .344 .134 Poor .114 Bust .33 .07 .184 .024 -.124 .034 -.089 -.264 -.104 a. Your portfolio is invested 28 percent each in A and C and 44 percent in B. What is the expected return of the portfolio? 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 this portfolio? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161. c. What is the standard deviation of this 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 b. Variance c. Standard deviation % %
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Your firm needs to decide how much to ship along each route AND which of the new stores to open. Opening Gamma incurs a fixed cost of $225. Opening Omega incurs a fixed cost of $200. The relevant...
-
What are the two major differences between insurance and hedging?
-
How does the process scheduler in modern operating systems optimize for both throughput and fairness in a multi-core, multi-threaded environment ? Explain
-
Information from Razure Adventures Companys financial statements for the current year are provided in the Working Papers. Work independently to complete the following problem. 1. Calculate the...
-
Nasreen Company issues $2 million, 10-year, 8% bonds at 97, with interest payable on July 1 and January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2014. (b)...
-
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends,...
-
I need help with this assignment: Week 4 Assignment - Southwest Case StudyOverview Complete analysis of Southwest. Assess the organizational layout, performance metrics, and the technology that is...
-
What is glide plane? When mirror plane is parellal to xy plane and passes through origin Find the equivalent points for a glide,b glide and n-glide and d glide 4
-
A Pizza store has 4 operators that take calls from customers. Each call lasts 5 minutes, on average, with a standard deviation of 5 minutes. A call arrives, on average, every 3 minutes, with a...
-
Peter Co uses a periodic inventory system and purchases (use 4 decimal points for unit cost) for the month of August were: Date Units Unit cost $ Beginning Inventory 1-Aug 2900 2.226 Purchase 10-Aug...
-
In social media in sport, discuss the AISAM Model in digital marketing with specific examples?
-
What sales volume is required at a retail price of Cr. 6.85 to give the same incremental profit as selling 30 tons at a retail price of Cr. 8.20?
-
Ex parte communications allow the communications about the substance of a specific case (not merely administrative or ministerial) between Appeals and auditors to maintain fairness. (explain) a. True...
-
7 A 29-year-old, previously healthy man suddenly collapses at a party where legal and illicit drugs are being used. Enroute to the hospital, he requires resuscitation with defibrillation to establish...
-
Whenever an activity has physical impacts on individuals not directly involved in the activity, if the impact on the outside party is negative, it is called a(n) _________; if the impact is positive,...
-
If a firm can avoid paying the external costs it imposes on others, it _________ its own costs of production but not the _________ cost to society.
-
The benefits of a product or service that spill over to an outside party not involved in producing or consuming the good are called _________.
Study smarter with the SolutionInn App