You bought shares of stock from Tesla, Target, and Toyota. You feel like every year...
50.1K
Verified Solution
Link Copied!
Question
Finance
You bought shares of stock from Tesla, Target, and Toyota. You feel like every year in the future will be randomly either "spectacular" or "depressing". State of Economy Spectacular Depressing Probability of State of Economy 0.78 0.22 Rate of Return if State Occurs Stock Stock of Stock of of Tesla Target Toyota 0.33 0.23 0.31 0.09 0.09 -0.05 Requirement 1: If you bought an equally weighted portfolio of Tesla, Target, and Toyota shares, what return would you expect to receive every year on your stock investment? (Do not round your intermediate calculations.) (Click to select) (Click to select) 23.57% 26.07% 35.60% 38.37% 17.84% (Click to select) pect the variance of your portfolio returns to be, if you invested 30 money in Tesla's shares, same proportion in Target's shares, and 40 a's shares? (Do not round your intermediate calculations.) Requirement 2: What do you expect the variance of your portfolio returns to be, if you invested 30 percent of your money in Tesla's shares, same proportion in Target's shares, and 40 percent in Toyota's shares? (Do not round your intermediate calculations.) (Click to select) (Click to select) 0.014922 0.016922 0.019122 0.019422 0.011422
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!
