Question: Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What are


Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What are the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with equal investment in all three assets? d. What is the portfolio's variance and standard deviation using the same asset weights in part (c)? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instru a. What is the expected return of asset R? (Round to four decimal places.) What is the expected return of asset S? (Round to four decimal places.) What is the expected return of asset T? (Round to four decimal places.) b. What is the variance of asset R? (Round to four decimal places.) What is the variance of asset S? (Round to four decimal places.) What is the variance of asset T? (Round to four decimal places.) What is the standard deviation of asset R? (Round to four decimal places.) What is the standard deviation of asset S? (Round to four decimal places.) What is the standard deviation of asset T? (Round to four decimal places.) c. What is the expected return of a portfolio with equal investment in all three assets? (Round to four decimal places.) d. What is the portfolio's variance using the same asset weights from part (c)? (Round to four decimal places.) What is the portfolio's standard using the same asset weights from part (c)? (Round to four decimal places.) Enter your answer in each of the answer boxes. Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) State of Economy Boom Growth Stagnant Recession Probability of State 0.29 0.38 0.23 0.10 Return on Asset R in State 0.020 0.020 0.020 0.020 Return on Asset S in State 0.260 0.100 0.150 -0.010 Return on Asset T in State 0.400 0.260 0.035 -0.150 Print Done
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