- Consider The Following Information Rate Of Return If State Occurs Probability Of State Of Economy State Of Economy Sto 1 (28.15 KiB) Viewed 13 times
Consider the following information: Rate of Return if State Occurs Probability of State- of Economy State of Economy Sto
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Consider the following information: Rate of Return if State Occurs Probability of State- of Economy State of Economy Sto
Consider the following information: Rate of Return if State Occurs Probability of State- of Economy State of Economy Stock A Stock B Stock C Boom .20 .32 .42 .22 Good .50 17 13 11 Poor .25 -.04 -.07 -.05 Bust .05 -.12 -.17 -.09 a. Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Expected return b-1. Variance b-2. Standard deviation %