Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. consider the following information: rate of return

Consider the following information: Rate of Return if State Occurs State of Economy Probability of...

70.2K

Verified Solution

Question

Finance

Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.20 0.19 0.38 0.28 Good 0.25 0.16 0.23 0.10 Poor 0.10 0.00 0.09 0.05 Bust 0.45 0.08 0.22 0.10

a. Your portfolio is invested 25 percent each in A and C and 50 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.)

b-2. What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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

Statistics
1.2K views

Suppose (?,?) are distributed uniformly inside the quadrilateral ? with vertices (0,0), (2,0), (1,1), and (0,1). After...

Biology
1.2K views

are negatively charged par in the orbitis around the nucleus of an alon they are...

Physics
1.2K views

Figure 35 E9 shows a part of an electric circuit Th wires AB CD and...

Basic Math
1.2K views

Consider the trigonometric equation 2 sin(0) + 3 = 4, where the angle is measured...

Statistics
1.2K views

Next question You can retry this question below Suppose the true proportion of voters in...

Accounting
1.2K views

A bank bill with a face value of $250,000 was issued today and it matures...

Accounting
1.2K views

On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build...

Accounting
1.2K views

To the seller, a cash discount is also considered a(n) a. sales discount b. purchase...

Accounting
1.2K views

On January 1, 2023, Bramble Ltd. entered into an agreement to lease a truck from...

Accounting
1.2K views

On May 7, Juanita Construction provides services on account to Michael Wolfe for $3,700. Michael...

Accounting
1.2K views

Cove's Cakes is a local bakery. Price and cost information follows: $ 14.71 Price per...

Finance
1.2K views

Module 2 - In an economy far far away, the manufacturing of skin health tonic...