Question: Problem # 1 ( 8 marks ) What is the expected return for the following portfolio?Asset Investment ReturnA $ 2 0 0 1 5 %
Problem # marksWhat is the expected return for the following portfolio?Asset Investment ReturnA $B $C $Problem # MarksYou purchased shares of common stock on January for $ per share. The stockpays an annual dividend of $ per share. On December the market price is $ pershare. What is your percentage return on investment for the year?Problem # marksUse the information in the table below and answer the following questions.State of theProbabilityReturn onReturn onEconomyOf StateABGrowth Normal Recession a b c d e What is the expected return on security A marksWhat is the standard deviation of security A marksWhat is the expected return on a $ portfolio that has $ invested in A and theremainder invested in B The expected return of stock B marksWhat is the correlation between the returns of stock A and stock B Assume the standarddeviation of security B is Assume the COV of the returns between A and B is is using decimals marksWhat is the total risk standard deviation of the portfolio in part c marks
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