The role of portfolio structure management is very important to have an The role of portfolio structure
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The role of portfolio structure management is very important to have an
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The role of portfolio structure management is very important to have an optimal investment portfolio. One of the main points taken into consideration while constructing the portfolio is the return and risk. The data below pertain to 3 stocks in different states of economy the following information relate to their stocks. State of the Probability of Return on Stock Return on Stock Return on Stock economy economy A B Boom 0.30 0.30 0.45 0.33 Good 0.40 0.12 0.10 0.15 Poor 0.25 0.01 -0.15 -0.05 Bust 0.05 -0.06 -0.30 -0.09 You are required to prepare the following: A. Write proper introduction on the methods of assessing risk in the investment B. Calculate the return of the portfolio in each state of economy. C. Calculate the portfolio expected return. D. Calculate the variance of returns. E. Calculate the standard deviation of returns. The role of portfolio structure management is very important to have an optimal investment portfolio. One of the main points taken into consideration while constructing the portfolio is the return and risk. The data below pertain to 3 stocks in different states of economy the following information relate to their stocks. State of the Probability of Return on Stock Return on Stock Return on Stock economy economy A B Boom 0.30 0.30 0.45 0.33 Good 0.40 0.12 0.10 0.15 Poor 0.25 0.01 -0.15 -0.05 Bust 0.05 -0.06 -0.30 -0.09 You are required to prepare the following: A. Write proper introduction on the methods of assessing risk in the investment B. Calculate the return of the portfolio in each state of economy. C. Calculate the portfolio expected return. D. Calculate the variance of returns. E. Calculate the standard deviation of returns.
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A Risk management is an essential part of the investment decisionmaking process The procedure entails determining and assessing the level of risk asso... View the full answer
Related Book For
Elementary Statistics
ISBN: 978-0538733502
11th edition
Authors: Robert R. Johnson, Patricia J. Kuby
Posted Date:
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