Question: Hello tutor! Just these three, please! 1)Calculate the standard deviation for the following company based on the forecasts given. Economic condition Probability Return forecast Expansion
Hello tutor! Just these three, please!
1)Calculate the standard deviation for the following company based on the forecasts given.
| Economic condition | Probability | Return forecast |
| Expansion | 20% | 13% |
| Normal | 60% | 5% |
| Recession | 20% | -14% |
Provide your answer in percent, rounded to two decimals, omitting the % sign.
2) As a financial adviser, you are recommending a well-diversified fund with an expected rate of return of 17% and a standard deviation of 39% to your clients. A client would like to split her investment between your fund and T-bills so that her standard deviation is no more than 27%. What will be her expected return? T-bill's yield 3%. Provide your answer in percent rounded to two digits, omitting the % sign.
3)
Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 25%. The T-bill rate is 3% . Suppose your risky portfolio includes the following investments in the given proportions.
| Dell | 50% |
| Apple | 30% |
| HP | 20% |
What are the investment proportions of your clients overall portfolio, including the position in T-bills, if your client's risk aversion coefficient is 3?
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