Question: The returns for three different assets are given as below. Probability Asset A Asset B Asset C 0.3 30% 40% 10% 0.2 20% 30% 0%

 The returns for three different assets are given as below. Probability

The returns for three different assets are given as below. Probability Asset A Asset B Asset C 0.3 30% 40% 10% 0.2 20% 30% 0% 0.4 0% -10% 10% 0.1 -30% -30% 20% For the assets calculate the following values: (write all your answers in percentages rounded to the nearest integer. If you calcualte 0.06845 then the answer rounded to nearest integer percentage is 7%. Do not enter percentage in the blank area since percentage is already written. Therefore write only 7) Expected return of asset A = % Expected return of asset B = % Expected return of asset C = % Standart deviation of return of asset A = Expected return of a portfolio with weights of 0.2 from assets A and B and 0.6 from asset C = % Calculate the covariance between A and B and write it as decimal number with 3 digits after 0 (as 0.xyz Also use negative sign if needed) = Calculate the covariance between B and C and write it as decimal number with 4 digits after 0 (as 0.xyzt Also use negative sign if needed) = 1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!