Question: Please show step by step solution. what is the varince? and what is the exact expected real risk premium? i would to know the following:
Consider the following information about three stocks Rate of Return If State Occurs State of Economy Boom Normal Bust Probability of State of Economy 25 Stock A Stock B 33 Stock C .55 .09 -45 .60 .15 .00 your answer as a percent rounded to 2 decimal places, e.g. 32.16.) - What is the variance? (Do not round intermediate calculations and round - 16161.) ermediate calculations and enter vour answer as a perrent on the w your answer as a percent rounded to 2 decimal places, ec. 32. 6.) C-1. If the expected inflation rate is 3.30 percent, what are to expected real returns on the w all ediate calculations and en y rounded to 2 decimal places, e.34.10.) C. What are the approximate and exact expected real risk premiums on the portfolio? 2. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e... 32.16.) X Answer is not complete. Portfolio expected return 13.34 Variance 15.32 Standard deviation Expected risk premium Approximate expected real return 9.54 % 10.04 9.72 Exact expected real return Approximate expected real risk premium Exact expected real risk premium 9.54 12.84 % Consider the following information about three stocks Rate of Return If State Occurs State of Economy Boom Normal Bust Probability of State of Economy 25 Stock A Stock B 33 Stock C .55 .09 -45 .60 .15 .00 your answer as a percent rounded to 2 decimal places, e.g. 32.16.) - What is the variance? (Do not round intermediate calculations and round - 16161.) ermediate calculations and enter vour answer as a perrent on the w your answer as a percent rounded to 2 decimal places, ec. 32. 6.) C-1. If the expected inflation rate is 3.30 percent, what are to expected real returns on the w all ediate calculations and en y rounded to 2 decimal places, e.34.10.) C. What are the approximate and exact expected real risk premiums on the portfolio? 2. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e... 32.16.) X Answer is not complete. Portfolio expected return 13.34 Variance 15.32 Standard deviation Expected risk premium Approximate expected real return 9.54 % 10.04 9.72 Exact expected real return Approximate expected real risk premium Exact expected real risk premium 9.54 12.84 %
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