The table below shows the expected rates of return for three stocks and their weights in...
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The table below shows the expected rates of return for three stocks and their weights in some portfolio: State Recession Normal Boom 4+ decimals Part 1 What is the expected portfolio return? Submit Portfolio weights Probability 0.2 0.5 0.3 Stock A 0.5 4+ decimals 0 0.03 0.08 Stock B 0.2 Expected returns 0.03 0.07 0.09 Part 2 What is the standard deviation of the portfolio returns? Stock C 0.3 -0.03 0.04 0.12 B Attempt 1/10 for 10 pts. Attempt 1/10 for 10 pts. The table below shows the expected rates of return for three stocks and their weights in some portfolio: State Recession Normal Boom 4+ decimals Part 1 What is the expected portfolio return? Submit Portfolio weights Probability 0.2 0.5 0.3 Stock A 0.5 4+ decimals 0 0.03 0.08 Stock B 0.2 Expected returns 0.03 0.07 0.09 Part 2 What is the standard deviation of the portfolio returns? Stock C 0.3 -0.03 0.04 0.12 B Attempt 1/10 for 10 pts. Attempt 1/10 for 10 pts.
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Part 1 The expected portfolio return can be calculated by taking the weighted average of the expecte... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324302691
11th edition
Authors: Eugene F. Brigham, ? Joel F. Houston
Posted Date:
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