Question: thumbs up for all correct answers. 10. Expected return and standard deviation. Use the information of assets A and B presented in the table below

thumbs up for all correct answers.

10. Expected return and standard deviation. Use the information of assets A and B presented in the table below to answer the following questions. Use Excel, formula and calculator State of Economy Probability of State Return on A in State Return on B in State Boom .34 0.540 0.210 .33 0.010 0.210 Normal Recession .33 -0.440 0.210 a. What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? d. What asset would you buy and why

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!

thumbs up for all correct answers. 10. Expected return and standard deviation. Use the information of assets A and B presented in the table below to answer the following questions. Use Excel, formula...

please solve 10. Expected return and standard deviation. Use the information of assets A and B presented in the table below to answer the following questions. Use Excel, formula and calculator State...

Answer each question individually all parts need to be answered for each question. Homework: Chapter 8 Homework Save Score: 0 of 1 pt 6 of 9 (1 complete) HW Score: 11.11%, 1 of 9 pts P8-21 (similar...

Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What are the variance and the standard deviation of...

Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets: LOADING... . What are her expected returns and the risk from her investment in...

answer the third part of homework:Risk Budgeting. I.\tMatrix\tAlgebra\tand\tPortfolio\tMath\t(44\tpoints,\t4\tpoints\teach) Let Ri denote the simple return on asset i (i = 1, , N) with E[Ri] = i,...

Expected return and standard deviation Use the following information to answer the questions: a. What is the expected return of each ost? b. What are the variance and the standard deviation of each...

Standard deviation . Calculate the standard deviation of U.S. Treasury bills, long-term government bonds, and large-company stocks for 1987 to 1996 from Table 8.1. Which had the highest variance?...

ROUND ALL ANSWERS TO FOUR DECIMAL PLACES. Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer...

What is a quasi-equilibrium process? What is its importance in engineering?

1. The block shown has a mass of 150 kg and rests on a surface that has` coefficients of static and kinetic friction 0.5 and 0.4 respectively. A force, F = (60 t 2 ) N is applied to the cable, where...

Principle Components Analysis ( PCA ) is an example of features' selection: True False Clear selection

Two operators are assigned to service four machines that have an expected downtime of 5 0 percent. When running, each machine can produce 6 0 units / hour . The operator is paid $ 2 0 . 0 0 / hour ,...

analyze how marketing communications writing connects to design. remember syntax-critical grammar rules.

apply newswriting, technical writing, and persuasive copywriting techniques to print and web projects.

evaluate signs to determine their value on communication.