Question: please help asap Problem 11-25 Portfolio Returns and Deviations [LO 2] Consider the following information on a portfolio of three stocks: State of Economy Boom
Problem 11-25 Portfolio Returns and Deviations [LO 2] Consider the following information on a portfolio of three stocks: State of Economy Boom Normal Bust Probability of State of Economy .15 .54 Stock A Rate of Return .08 .16 .17 Stock B Rate of Return 33 28 -27 Stock C Rate of Return 44 26 .36 31 Required: (a) If your portfolio is invested 38 percent each in A and B and 24 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? (Do not round intermediate calculations. Round your variance answer to 5 decimal places (e.g., 32.16161) and input your other answers as a percentage rounded to 2 decimal places (e.g., 32.16).) % Expected return Variance Standard deviation % (b) If the expected T-bill rate is 4.55 percent, what is the expected risk premium on the portfolio7 (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) % Expected risk premium eBook & Resources Hints References Hint #1
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