Question: Refer to the attachment, which provides expected returns for 2 assets - A & B for 3 different states of nature:
Refer to the attachment, which provides expected returns for assetsA & B for different states of nature: Boom, Normal, & Recession. Each state is considered to be equally probable.
For each of the following calculations, express your answer in percentage terms, rounded to decimal places ie
What is the expected return for Asset A ERA Blank Fill in the blank, read surrounding text.
What is the expected standard deviation in returns for Asset B Blank Fill in the blank, read surrounding text.
Suppose that a portfolio is created with a invested in Asset A and invested in Asset B
What is the expected return for the portfolio, ERP Blank Fill in the blank, read surrounding text.
What is the expected standard deviation in returns for the portfolio? Blank Fill in the blank, read surrounding text.
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