Question: FIN 503 Chapter 13 & Chapter 11 1. Consider the following information: m _Pr0bability Mahl(%l Boom .25 15 Normal .50 8 Slowdown . l 5

FIN 503 Chapter 13 & Chapter 11 1. Consider the following information: m _Pr0bability Mahl(%l Boom .25 15 Normal .50 8 Slowdown . l 5 4 Recession .10 -3 ' What is the expected return? - What is the variance? - What is the standard deviation? 2. Consider the following information (Slide # 15) m Probability X Z Boom .25 15% 10% Normal .60 10% 9% Recession .15 5% 10% - What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Z? 3. The risk free rate IS 1% and the reaulred ret] on the market

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