Question: What is the expected return and standard deviation for the following socdk State of Economy Boom Normal Recession Probability of State of Economy Rate of
What is the expected return and standard deviation for the following socdk State of Economy Boom Normal Recession Probability of State of Economy Rate of Return if State Occurs 74 .06 .20 A) 8.80 percent; 5.74 percent B) 8.53 percent; 5.74 percent C) 8.42 percent; 5.74 percent D) 8.53 percent; 5.69 percent E) 8.42 percent; 5.69 percent 5) What is the expected return of an equally weighted porfolio comprised of the of the following 5) three stocks? Rate of Return if State Occurs Stock B 13 Probability of State of Economy State of Economy Stock C 07 Stock A 19 15 25 .72 .03 Boom .13 .22 .05 Normal Bust - 29 14 A) 11.33 percent B) 9.67 percent C) 10.96 percent D) 9.82 percent E) 10.48 percent
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