Consider the following information:
State Probability Stock A Stock B Stock C
Boom 0.32 0.02 0.08 0.05
Bust 0.68 -0.12 0.18 0.07
What is the expected return of a portfolio that has invested $11,537 in Stock A, $1,428 in Stock B, and $8,980 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals
So, portfolio return = -0.3878%
Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 0.02 0.08...
Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 -0.06 0.25 -0.13 Bust 0.68 0.25 0.08 -0.12 What is the expected return of a portfolio that has invested $2400 in Stock A, $7900 in Stock B, and $8900 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).
Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 -0.11 0.23 0.26 Bust 0.35 0.16 0.03 -0.08 What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3) Enter the answer with 4 decimals (e.g. 0.1234).
Consider the following information: Rate of Return if State Occurs State of Economy Boom Good Probability of State of Economy 0.25 2.15 0.30 0.30 Stock A 0.23 0.12 -0.02 -0.18 Stock B Stock C 0.39 0.26 0.15 0.16 -0.12 -0.03 0.18 0.11 Poor Bust a. Your portfolio is invested 35 percent each in A and C and 30 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...
Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.64 0.36 Stock A 0.29 0.07 Stock B Stock C 0.31 0.13 0.27 0.05 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?
Rate of Return if State Occurs State of Economy Probability Stock A Stock B Stock C Boom 0.15 0.30 0.45 0.33 Good 0.45 0.12 0.10 0.15 Poor 0.35 0.01 -0.15 -0.05 Bust 0.05 -0.20 -0.30 -0.09 Your portfolio is invested 30% each in A and C and 40% in B. What is the expected return of the portfolio? What is the variance of this portfolio? The standard deviation?
Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 0.26 0.17 -0.10 Bust 0.35 0.19 -0.13 -0.05 What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3)
Rate of Return if State Occurs Stock State of Economy Probability of State of Economy Stock A Stock B Boom 45% 0.18 0.40 0.22 Bust 55% -0.06 -0.30 -0.05 Asset Weights 25% 30% 45% What is the expected return of this portfolio?
Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.74 0.26 Stock A 0.15 0.17 Stock B Stock C 0.29 0.05 0.09 0.13 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 10 percent each in A and B and 80 percent in C?
Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom 0.10 0.18 0.48 0.33 Good 0.30 0.11 0.18 0.15 Poor 0.40 0.05 -0.09 -0.05 Bust 0.20 -0.03 -0.32 -0.09 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...
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 0.35 0.21 0.34 0.26 Good 0.25 0.11 0.23 0.08 Poor 0.30 –0.02 –0.10 –0.03 Bust 0.10 –0.10 –0.18 –0.10 a. Your portfolio is invested 35 percent each in A and C and 30 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...