Returns and Standard Deviations - Consider the following information:
State of Economy | Probability of State of Economy | Rate of Return If State Occurs | ||
---|---|---|---|---|
Stock A | Stock B | Stock C | ||
Boom | .10 | .35 | .45 | .27 |
Good | .60 | .16 | .10 | .08 |
Poor | .25 | −.01 | −.06 | −.04 |
Bust | .05 | −.12 | −.20 | −.09 |
Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio?
What is the variance of this portfolio? The standard deviation?
a. Expected return of Boom =30%*0.35+40%*0.45+30%*0.27
=36.60%
Expected return of Good =30%*0.16+40%*0.10+30%*0.08 =11.20%
Expected return of Boom =30%*-0.01+40%*-0.06+30%*-0.04
=-3.90%
Expected return of Boom =30%*-0.12+40%*-0.20+30%*-0.09
=-14.30%
Expected Return of the portfolio
=0.10*36.60%+0.60*11.20%+0.25*-3.90%+0.05*-14.30% =8.69%
b. Variance of this portfolio
=0.10*(36.60%-8.69%)^2+0.60*(11.20%-8.69%)^2+0.25*(-3.90%-8.69%)^2+0.05*(-14.30%-8.69%)^2
=0.014773
Standard Deviation =0.014773^0.5 =12.15%
Returns and Standard Deviations - Consider the following information: State of Economy Probability of State of...
10. Returns and Standard Deviations Consider the following information: Rate of Return if State Occurs Probability of State of Economy State of Economy Stock A Stock B Stock C Boom 1 Good .11 .02 .45 .10 .02 -.25 .33 .17 -05 -.09 Poor Bust 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? b. What is the variance of this portfolio? The standard deviation?
Returns and Standard Deviations Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom Bust 1.75 .25 06 14 .16 .02 .33 -06 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?
PLEASE add calculations and how to get the answers L01 10. Returns and Standard Deviations. Consider the following information: LO 2 State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom . 15 .35 .45 33 Good Poor .50 .25 .10 .12 .01 -.11 .10 .02 -25 .17 -.05 Bust -.09 a. Your portfolio is invested 25 percent each in A and Cand 50 percent in B. What is...
11.09 Returns and Standard Deviations Consider the following information: Main Page State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Portfolio Boom 0.25 25.00% 45.00% 33.00% Good 0.4 9.00% 10.00% 15.00% Poor 0.3 3.00% -10.00% -5.00% Bust 0.05 -5.00% -25.00% -9.00% Expected Value Variance Standard Deviation a. Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of...
Returns and Variances - Consider the following information: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom .75 .06 .15 .25 Bust .25 .11 −.04 −.08 What is the expected return on an equally weighted portfolio of these three stocks? What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?
Returns and standard deviation- Consider the following information: State of economy Probability of state of economy Rate of return if state occurs Stock A Stock B Stock C Boom .75 .07 .01 .27 Bust .25 .12 .19 -.05 a. What is the expected return on an equally weighted portfolio of these 3 stocks? b. What is the variance of a portfolio invested 20% in each in A and B and 60% in C?
P13-10 Returns and Standard Deviations (LO1) Consider the following information: Rate of Return if State Occurs Probability of State of Economy Stock A .35 .30 State of Economy Boom Good Poor Bust .30 Stock B .40 .10 .04 -07 .11 .03 Stock C .33 .12 .05 -9.95 .13 27 -03 Requirement 1: Your portfolio is invested 22 percent each in A and C, and 56 percent in B. What is the expected return of the portfolio? (Do not round your...
Problem 13-10 Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .15 .36 .46 .26 Good .45 .21 .17 .10 Poor .35 −.03 −.06 −.04 Bust .05 −.17 −.21 −.07 a. Your portfolio is invested 22 percent each in A and C, and 56 percent in B. What is the expected return of the portfolio? (Do not...
Problem 13-10 Returns and Standard Deviations (L01) Consider the following information: Rate of Return If State Occurs Probability of - State of Economy .15 Stock A Stock B Stock C State of Economy Boom Good Poor Bust 1:50 .43 .34 .08 .50 .14 30 -09 .05 ces a. Your portfolio is invested 32 percent each in A and C, and 36 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your...
please provide assistance with the following as well as step by step instruction question 4 your portfolio is invested 30% each in A and C, and 40% in B what us the expected return if the portfolio? Also what is the variance of this portfolio? the standard deviation. pleas give steps and calculation 3. Returns and Variances [LOI] Consider the following information: Rate of Return If Probability of State of State of State Occurs Economy Economy Stock Stock Stock A...