Use The Following To Answer Questions 1 6 State Of Economy Asset A Rate Of Retum Probability Of State Of Economy 0 1 0 1 (52.66 KiB) Viewed 51 times
Use The Following To Answer Questions 1 6 State Of Economy Asset A Rate Of Retum Probability Of State Of Economy 0 1 0 2 (51.17 KiB) Viewed 51 times
Use the following to answer questions 1 - 6 State of Economy Asset A Rate of Retum Probability of State of Economy 0.1 0.4 0.5 Asset B Rate of Return 0.08 0.03 -0.01 Boom Normal Recession 0.25 0.15 -0.08 Question 1 (1 point) What is the expected return for asset A? 4 Question 2 (1 point) What is the expected return for asset B? AM > Question 3 (1 point) What is the standard deviation for asset A? Question 4 (1 point) What is the standard deviation for asset B? A Question 5 (1 point) What is the expected return of a portfolio that has 80% in Asset A and 20% in Asset B? A Question 6 (1 point) The standard deviation of the 80% Aland 20% B portfolio most likely should A) Equal 80% X A's standard deviation plus 20% * B's standard deviation B) Be greater than 80% X A's standard deviation plus 20% x B's standard deviation OC) Be less than 80% X A's standard deviation plus 20% x B's standard deviation
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