Expected return and standard deviation. Use the following information to answer the questions: 3 a....
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Expected return and standard deviation. Use the following information to answer the questions: 3 a. What is the expected return of each asset? b. What are the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with equal investment in all three assets? d. What is the portfolio's variance and standard deviation using the same asset weights in part (c)? Hint: Make sure to round intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a. What is the expected return of asset R? (Round to four decimal places.) Data Table (Click on the following icon in order to copy ils contents into a spreadsheet.) Return on Asset S in State State of Economy Boom Growth Stagnant Recession Probability of State 0.29 0.38 0.22 0.11 Return on Asset Rin State 0.020 0.020 0.020 0.020 0.300 0.150 0.150 -0.010 Return on Asset T in State 0.440 0.340 0.015 -0.180 Print Done Enter your answer in the answer box and then click Check Answer. ? 11 parts remaining Clear All Check Answer a. What is the expected return of eachasset? b. What are the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with equal investment in all three assets? d. What is the portfolio's variance and standard deviation using the same asset weights in part (c)? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a. What is the expected return of assetR? nothing (Round to four decimal places.) What is the expected return of asset S? nothing (Round to four decimal places.) What is the expected return of asset T? nothing (Round to four decimal places.) b. What is the variance of asset R? nothing (Round to four decimal places.) What is the variance of asset S? nothing (Round to four decimal places.) What is the variance of asset T? nothing (Round to four decimal places.) What is the standard deviation of asset R? nothing (Round to four decimal places.) What is the standard deviation of asset S? nothing (Round to four decimal places.) What is the standard deviation of asset T? nothing (Round to four decimal places.) c. What is the expected return of a portfolio with equal investment in all three assets? nothing (Round to four decimal places.) d. What is the portfolio's variance using the same asset weights from part (c)? nothing (Round to four decimal places.) What is the portfolio's standard using the same asset weights from part (c)? nothing (Round to four decimal places.)
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