Question: (Please also see Homework 6 Excel Examples for computation on Excel) Q6: Returns and Standard Deviations: Consider the following information: State of Economy Boom Rate

(Please also see Homework 6 Excel Examples for computation on Excel) Q6: Returns and Standard Deviations: Consider the following information: State of Economy Boom Rate of Return It State Occurs Probability of State of Economy Stock A Stock B Stock C .35 .40 .27 .10 Good .50 .16 .15 .08 Poor .25 -.02 -.03 -.04 Bust .15 -.12 - 18 -10 c. Your portfolio is invested 30 percent each inwand C, and 40 percent in B. What is the expected return of the portfolio? d. What is the variance of this portfolio? The standard deviation? (Please follow above example to solve this question)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Returns and Standard Deviations Consider the following information Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .20 .30 .45 .33 Good...

can anyone help me with these two problems please! found the ans on chegg but they were wrong! will upvote! QP 8: Returns and Standard Deviations Consider the following information: Rate of Return if...

Problem 11-8 Returns and Standard Deviations Consider the following information: Rate of Return if State Occurs Stock B Stock C State of Economy Boom Bust Probability of State of Economy .58 .42...

Problem 11-8 Returns and Standard Deviations Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy .58 42 Stock C Stock A .07...

1.You have $26,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 11.0 percent. If your goal is to create a...

NO EXCEL PLS. Show step by step and formulas 9. Returns and Standard Deviations Consider the following information: State of Economy Probability of State of Economy Stock A Stock B Stock C Boom Good...

P13-7 Calculating Returns and Standard Deviations (LO1] Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.20...

Answer the question and please show work. Problem 11-7 Calculating Returns and Standard Deviations LO 1 Consider the following information Rate of Return if State Occurs State of Probability of State...

6. Award: 10.00 points Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Stock A Stock B Economy Recession...

PLEASE add calculations and how to get the answers L01 10. Returns and Standard Deviations. Consider the following information: LO 2 State of Economy Probability of State of Economy Rate of Return If...

! (X+y) 2. 6 e.w Find ElX

If the midpoint on a straight-line demand curve is at a price of $7, what can we say about the elasticity of demand for a price change from $12 to $10? What about from $6 to $4?

Elaine loaned her brother, Mike, $ 1 7 5 , 0 0 0 to purchase a new home. Elaine does not charge Mike any interest on the loan. What are the tax consequences to Elaine and Mike? A ) Elaine is treated...

8:37 * N. 80% i ... OBJECTIVES: Create relationships Create a Pivot Table from Related Tables Create a PivotChart Modify the PivotChart The major section in this chapter :ontinuation is: Data...

4-42. Thank you in advance for your co-operation on this matter.

4-40. Dont hesitate to call our office any time.

4-34. Over the holiday, we hired a crew to expand the work area.