The following is the distribution of market portfolios and the probability of return on individual asset A according to
Posted: Sun Jun 05, 2022 10:40 am
The following is the distribution of market portfolios and the
probability of return on individual asset A according to market
conditions after one year.
Market conditions (probability of occurrence) :
recession(0.2)
usually (0.5)
Booming (0.3)
-20%
10%
40%
A
-50%
10%
70%
1)What is the expected return and variance of the market
portfolio?In turn, answer up to the second decimal place in %
units.
2)What if you get a beta value for the market of A stock?
probability of return on individual asset A according to market
conditions after one year.
Market conditions (probability of occurrence) :
recession(0.2)
usually (0.5)
Booming (0.3)
-20%
10%
40%
A
-50%
10%
70%
1)What is the expected return and variance of the market
portfolio?In turn, answer up to the second decimal place in %
units.
2)What if you get a beta value for the market of A stock?