Use the following to answer questions 1 - 6 State of Economy Asset A Rate of Retum Probability of State of Economy 0.1 0
Posted: Sat Nov 27, 2021 5:28 pm
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
Use the following to answer 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