Question: FIN300, easy. whole problem. Problem 13-23 Portfolio Returns and Deviations [LO2] Consider the following information about three stocks: a-1. If your portfolio is invested 40

FIN300, easy. whole problem.
FIN300, easy. whole problem. Problem 13-23 Portfolio Returns and Deviations [LO2] Consider
the following information about three stocks: a-1. If your portfolio is invested

Problem 13-23 Portfolio Returns and Deviations [LO2] Consider the following information about three stocks: a-1. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. What is the variance? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) a-3. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the expected T-bill rate is 4.00 percent, what is the expected risk premium on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. If the expected inflation rate is 3.60 percent, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What are the approximate and exact expected real risk premiums on the portfolio? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) \begin{tabular}{|l|r|l|} \hline a-1. Portfolio expected return & 29.60 & % \\ \hline a-2. Variance & 0.02960 & \\ \hline a-3. Standard deviation & 17.20 & % \\ \hline b. Expected risk premium & 0.02 & % \\ \hline c-1. Approximate expected real return & 1.40 & % \\ \hline c-1. Exact expected real return & 0.02 & % \\ \hline c-2. Approximate expected real risk premium & 0.05 & % \\ \hline c-2. Exact expected real risk premium & 0.02 & % \\ \hline \end{tabular}

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