Question: Please answer the last question at the bottom. (It is all one question) An investor is considering the purchase of Gryphon stock, which has returns


Please answer the last question at the bottom. (It is all one question)
An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Rate of Return Probability b.19 Recession 0.41 Normal Economy Boom 0% 5% 19% 6.4 Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places. Enter your answers below. E(r) = 9.65 Correct response: 9.65 % Std. Dev. = 7.84 Correct response: 1-8430.01% This question has 3 parts fie. you will be clicking Verily 3 times) The investor decides to diversify by investing $7,000 in Gryphon stock and $3,000 in Royal stock, which has an expected return of 7% and a standard deviation of 9.6%. The correlation coefficient for the two stocks' returns is 0.5. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places. Enter your answers below. E(rp) = 8.86 Correct response: 8.86+0.01 % Std. Dev. = 7.36 Correct responset 7.37+0.02% Suppose the investor decides to invest an additional S3,500 in a treasury bill yielding 3%. What will be the expected return and standard deviation of this portfolio Round your answers to 2 decimal places. E(Tp) = 7.34 % Std. Dev. = Number %
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