Hello tutor! Just these three, please! 1)Calculate the standard deviation for the following company based on the...

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Finance

Hello tutor! Just these three, please!

1)Calculate the standard deviation for the following companybased on the forecasts given.

Economic condition

Probability

Return forecast

Expansion

20%

13%

Normal

60%

5%

Recession

20%

-14%

Provide your answer in percent, rounded to two decimals,omitting the % sign.

2) As a financial adviser, you are recommending awell-diversified fund with an expected rate of return of 17% and astandard deviation of 39% to your clients. A client would like tosplit her investment between your fund and T-bills so that herstandard deviation is no more than 27%. What will be her expectedreturn? T-bill's yield 3%. Provide your answer in percent roundedto two digits, omitting the % sign.

3)

Assume that you manage a risky portfolio with an expected rateof return of 15% and a standard deviation of 25%. The T-bill rateis 3% . Suppose your risky portfolio includes the followinginvestments in the given proportions.

Dell

50%

Apple

30%

HP

20%

What are the investment proportions of your client’s overallportfolio, including the position in T-bills, if your client's riskaversion coefficient is 3?

      -      A.       B.      C.       D.  

Dell

      -      A.       B.      C.       D.  

Apple

      -      A.       B.      C.       D.  

HP

      -      A.       B.      C.       D.  

T-Bill

A.

32%

B.

19.2%

C.

12.8%

D.

36%

Answer & Explanation Solved by verified expert
4.1 Ratings (663 Votes)
Since multiple questions have been posted and each question is independent of another I have answered the first question Question 1 Step 1 Calculate Expected Return The expected return is calculated    See Answer
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Transcribed Image Text

Hello tutor! Just these three, please!1)Calculate the standard deviation for the following companybased on the forecasts given.Economic conditionProbabilityReturn forecastExpansion20%13%Normal60%5%Recession20%-14%Provide your answer in percent, rounded to two decimals,omitting the % sign.2) As a financial adviser, you are recommending awell-diversified fund with an expected rate of return of 17% and astandard deviation of 39% to your clients. A client would like tosplit her investment between your fund and T-bills so that herstandard deviation is no more than 27%. What will be her expectedreturn? T-bill's yield 3%. Provide your answer in percent roundedto two digits, omitting the % sign.3)Assume that you manage a risky portfolio with an expected rateof return of 15% and a standard deviation of 25%. The T-bill rateis 3% . Suppose your risky portfolio includes the followinginvestments in the given proportions.Dell50%Apple30%HP20%What are the investment proportions of your client’s overallportfolio, including the position in T-bills, if your client's riskaversion coefficient is 3?      -      A.       B.      C.       D.  Dell      -      A.       B.      C.       D.  Apple      -      A.       B.      C.       D.  HP      -      A.       B.      C.       D.  T-BillA.32%B.19.2%C.12.8%D.36%

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