Hello,

I am having an issue figuring out LO1 10. Returns and Standard Deviation. if you could help me with it, that would mean a lot to me.

Thank you,

Jlate Occurs Normal Boom .15 -.09 .60 .25 -11 LO1 2. Calculating Returns and Standard Deviations. Based on the information, calculate the expected return and standard deviatio .30 two stocks. viations. Based on the following and standard deviation for the State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Recession Normal Boom .10 .50 .40 .02 .10 .15 -30 .18 31 8. Calculating Expected Returns. A portfolio is invested 20 percent in Stod G, 35 percent in Stock J, and 45 percent in Stock K. The expected returns on these stocks are 9.2 percent, 11.1 percent, and 13.8 percent, respectively. What is the portfolio's expected return? How do you interpret your answer 9. Returns and Standard Deviations. Consider the following information: 107 LO 2 State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom Bust .60 .15 .40 .03 .02 .16 .34 -.08 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? 10. Returns and Standard Deviations. Consider the following information: 101 02 State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C .15 .45 .35 .12 Boom Good Poor Bust .50 .25 .10 .33 .17 -.05 -.09 0.01 .02 -.25 -.11 3 a. Your portfolio is invested 25 percent each in A and C and 50 percent in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation? 11. Calculating Portfolio Betas. You own a stock portfolio invested 15 percent in Stock Q. 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .75,.87, 1.26, and 1.76 respectively. What is the portfolio beta