Consider the following two funds and their estimated returns under different states of the economy: Probability...
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Consider the following two funds and their estimated returns under different states of the economy: Probability Estimated Return (Fund A) Estimated Return (Fund B) 10% 25% State of economy Great Average Poor 30% 30% 40% 15% 20% Calculate the following: a. Expected return for fund A and for fund B b. Standard deviation of returns for fund A and fund B C. Covariance between returns of fund A and fund B d. Correlation between returns of fund A and fund B 11% 15% If you invest $2,000 in Fund A and $6,000 in Fund B, Calculate the following: 1. Portfolios' Expected Return 2. Portfolio's Standard Deviation Consider the following two funds and their estimated returns under different states of the economy: Probability Estimated Return (Fund A) Estimated Return (Fund B) 10% 25% State of economy Great Average Poor 30% 30% 40% 15% 20% Calculate the following: a. Expected return for fund A and for fund B b. Standard deviation of returns for fund A and fund B C. Covariance between returns of fund A and fund B d. Correlation between returns of fund A and fund B 11% 15% If you invest $2,000 in Fund A and $6,000 in Fund B, Calculate the following: 1. Portfolios' Expected Return 2. Portfolio's Standard Deviation
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import numpy as np Define the states of the economy states Great Poor Good Define the probabilities ... View the full answer
Related Book For
Intermediate Financial Management
ISBN: 978-1111530266
11th edition
Authors: Eugene F. Brigham, Phillip R. Daves
Posted Date:
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