Question: please post w equations not on excel! 2. Consider the following information about three stocks in three different states of the world. State Probability Auto
please post w equations not on excel! 2. Consider the following information about three stocks in three different states of the world. State Probability Auto Hotel Gold Boom 0.3 30% 29% -10% Normal 0.4 10% 10% 10% Recession 0.3 -10% -9% 30% a. What are the expected return and standard deviation for each of the three assets? b. What are the expected return and standard deviation of a portfolio with 70% investment in Auto and the remaining in Hotel? C. What are the expected return and standard deviation of a portfolio with 70% investment in Auto and the remaining in Gold? d. Explain why the expected returns and standard deviations have the patterns they do for the Auto-Hotel and Auto-Gold portfolios
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
