Question: QUESTION 5 1.429 points Save Answer Based on the following information, calculate the expected return: State of Economy Probability of State of Economy Portfolio Return

QUESTION 5 1.429 points Save Answer Based on the following information, calculate the expected return: State of Economy Probability of State of Economy Portfolio Return if State Occurs Recession Normal Boom 0.10 0.60 0.30 0.15 0.11 0.25 A. 12.6 percent 7.0 percent C13.4 percent D.9.8 percent OB. QUESTION6 1.429 points Save Answer Calculate the standard deviation of the returns of Stock A shown below: State of Economy Probability of State of Economy Stock A Return Boom Good Poor Bust 0.30 0.40 0.20 0.10 40% 20% 5% 30% A. 20.27 percent B. 15.81 percent C17.88 percent D. 13.92 percent
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
