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Question 1010 marks) The following data pertains to the scenario analysis for Stocks X and Y: Probability Stock X return
Posted: Tue Nov 16, 2021 7:47 am
by answerhappygod
- Question 1010 Marks The Following Data Pertains To The Scenario Analysis For Stocks X And Y Probability Stock X Return 1 (71.2 KiB) Viewed 111 times
Question 1010 marks) The following data pertains to the scenario analysis for Stocks X and Y: Probability Stock X return Stock Y return Bear Market 0.2 -20% -15% Normal Market 0.5 18% 20% Bull Market 0.3 50% 10% Required: (a) What are the expected rates of return for Stocks X and Y (% in 2 d.p.)? (b) What are the standard deviations of returns on Stocks X and Y (% in 2 d.p.)? (c) Assume that of your $10,000 portfolio, you invest $9,000 in Stock X and $1,000 in Stock Y. What is the expected rate of return on your portfolio (% in 2 d.p.)?