a) what is the expected return pf the portfolio? b) what is the standard deviation...

90.2K

Verified Solution

Question

Finance

image
image
a) what is the expected return pf the portfolio?
b) what is the standard deviation of the portfolio?
c) Using risks and returns of the above portfolio demonstrate how diversification helps in reducing the portfolio risk. please use risks and returns of the securities versus a portfolio to answer this question.
4 points There was 30.000 pertolo that of Stocks X Y and Z? You invest equity in the three stock Sure of Economy Probability of state of economy Rate of Return Secours X 2 Boom 0.15 11 7 Welk 5 10W 5 14% al poes What is the expected rutum of the portfolio buit points What is the standard destion of the portfolio 12 pensule ko and returns of the above portfolio, demonstrate how diversification helps in reduong the portfolio rink. Penee niks and return of the securities were the portfolio to answer this question There is a $30,000 portfolio that consists of Stocks X, Y, and Z? You invest equally in the three stocks. State of Economy Probability of state of economy Rate of Return if State Occurs X Z Boom 0.15 11% -9% 7% Normal 0.65 8% 7% -3% Weak 0.1 5% 10% 4% Bust 222 -5% 1496 9%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students