Question: please help Below shows the expected returns for stock A and B in three possible states. State of the Normal Probabil 0.18 0.62 14% 8%

please help

Below shows the expected returns for stock A and B in three possible states. State of the Normal Probabil 0.18 0.62 14% 8% Recession 0.20 -10.00% 5.00% You have a portfolio which is comprised of 55 percent of stock A and 45 percent of stock B. Q: What is the expected rate of return on this portfolio? Q: What is the expected portfolio risk measured by standard deviation? 19

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 Accounting Questions!

The year has passed and Ron has become used to being able to come to you with more and more complex finance and accounting questions about this Ukrainian Division. He has come into your office in the...

Below shows the expected returns for stock A and B in three possible states. State of the Economy Boom Normal Recession Probability 0.18 0.62 0.20 A 22% 14% -10.00% B 14% 8% 5.00% You have a...

i only have an hour so someone please help asap Remaining Time: 8 minutes, 40 seconds. Question Completion Status Close Moving to another question will save this response Question 1 Question 1...

I am looking for the correct answer for this Q .. Can you help me :) I need also steps with Calculatorplz Thanks....

1 of 20 1.0 Points If events A and B are mutually exclusive, then the probability of both events occurring simultaneously is equal to A.any value between 0.5 and 1.0 B.0.0 C.1.0 D.0.5 Reset Selection...

V. (20 Points) Scenario and Portfolio Analysis Suppose you have predicted the following returns for stocks ABC and XYZ in three possible states of the economy: State Probability XYZ ABC Boom 0.50 -5%...

Complete tabs 7.2, 7.5, 7.15, 7.19, and 7.24 in the attached Chapter 7 Excel spreadsheet. Complete tabs 8.1, 8.6, 8.9, 8.11, and 8.26 in the attached Chapter 8 Excel spreadsheet. An EXAMPLE tab is...

Assignment 1 1. Food A contains 20 units of vitamin x and 40 units of vitamin y per gram. Food B contains 30 units of each of vitamins x and y. The daily minimum human requirements of vitamin x and y...

1. You own a portfolio consisting of the securities listed below. The expected return for each security is as shown. What is the expected return on the portfolio? Number Price Expected Stock Of...

please answer as soon as possible. This is a short assignment. Just want to make sure the answers I figured out are correct. Questions 8,9 and 11 are free response (not multiple choice) those 3...

I've uploaded the whole problem, it's 2.4 that is giving me a hard time. I assume you have to find the present value of the free cash flow and then the debt, so you can calculate the weight of each,...

What events does the RecA protein facilitate?

Design Footing for column C2 shown in Fig-II. Allowable bearing capacity is (70+S)/980 Mpa. Depth of footing is 5feet. LL reduction is 30%. S.No Roll No R-Value S-Value 1 1-10 Roll Nox10 inches R 2...

A manufacturer has been selling 1 6 5 0 television sets a week a t $ 5 1 0 each. A market survey indicates that for each $ 1 7 rebate offered t o a buyer, the number o f sets sold will increase b y 1...

An inexperienced accountant for Silva Corporation showed the following in the income statement: income before income taxes $450,000 and unrealized gain on available-for-sale securities (before taxes)...

A batterys voltage is measured using a voltmeter with resistance 10.00 k; the result is 4.982 V. A 15.00k meter gives 4.993 V. Find (a) the batterys voltage (b) its internal resistance.

Discuss what you consider to be the measure of the success and effectiveness of social media. Should it be share of voice? Share of conversation? Sentiments? Brand mentions versus the industry or...

In the two-factor mixed model analysis of variance, show that Cov[(TB)y. (TB)r,] = -(1/a)og for i + i'. %3D

In Example 9.2, Acmes probability of technological success, 0.8, is evidently large enough to make continue development the best decision. How low would this probability have to be to make the...

Multiple Choice Question The bureaucratic principles proposed by Fayol and Weber would likely apply better to which of the following organizations? Google A food truck United Parcel Service A hobby...

Be able to provide a brief history of the development of state and local civil service systems

Understand the purpose of the civil service system job classification

Explain why position classification and compensation are very important and controversial parts of public administration organizations governed by civil service