Expected return of the portfolio = 6.7%
Standard deviation of the portfolio= 0.98%
NAME: There are two assets and two states of the economy. State of Economy Probability of...
NAME 1. There are two assets and two states of the economy. Rate of Return Rate of Return State of Probability of State of Stock B of Stock A Economy 15% -10% 0.60 Recession -5 30 Boom 0.40 Suppose you have $30,000 total. If you put $9,000 in Stock A and the remainder in Stock B, what will be the expected return and standard deviation on your portfolio? (5 points)
FINANCE 304 More Return/ Risk Problems There are two assets and two Prepared by Dr. NAME: Sam Watchison are two assets and two states of the economy. State of Probability of State Economy Rate of Return of Stock A Rate of Return of Stock B Recession Boom 15% 0.60 0.40 -10% 30 Suppose you have $30,000 total. If you B, what will be the expected return ve $30,000 total. If you put $9,000 in Stock A and the remainder in...
1. Assume that there are two assets and three state of economy as followState Of EconomyProbability Of State Of EconomyRate Of Return If State OccursAsset AAsset BRecession 0.20-0.150.20Normal 0.500.200.30Boom 0.300.600.40Assume further that Br. 15,000 invested in asset A and Br. 5,000 invested in asset B. Based on this information, answer the following questions.a) Compute expected returns and standard deviation of the portfolio à5Marks b) Compute covariance of the assets (CovAB) à2Marks c) If the assets...
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 0.25 14% 15% 33% Bust 0.75 12% 3% -6% What is the expected return and standard deviation of returns on an equally weighted portfolio of these three stocks? 2. Consider the following information: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock K Stock M Boom 0.10 25% 18%...
Check my work View previous attempt Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Roll -101 28 Ross 21% points Calculate the volatility of a portfolio of 35 percent Rolland 65 percent Ross by filling in the following table: (Do not round intermediate calculations. Enter all answers, except the standard deviation, as decimals rounded to 5 decimal places. Enter the standard deviation as a percent rounded to 2 decimal places.) eBook...
State of Economy Bust Boom Security Returns if State Occurs Probability of State of Economy Roll Ross 0.60 13% 0.40 20 9% Calculate the expected return on a portfolio of 40 percent Roll and 60 percent Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Portfolio Return if State Occurs Product State of Probability of State...
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?
5. Use the following information to complete the questions: State of Economy Probability that State will Occur Return on Stock A Return on Stock B Return on Stock Recession 0.4 10% 15% 20% Boom 0.6 8% 4% 0% 8.8% 8.4% 8% Expected Return 0.20 0.50 0.30 Portfolio Weight 5a. Compute the expected return for the portfolio. 5b. Compute the variance and standard deviation for the portfolio.
Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Roll -16% 16 Ross 17% Calculate the expected return on a portfolio of 65 percent Roll and 35 percent Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) & Answer is complete but not entirely correct. State of Economy...
WOUULUYANCLUS I State Occurs State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Roll -10% 28 Ross 21% Calculate the standard deviations for Roll and Ross by filling in the following table: (A negative value should be indicated sign. Do not round intermediate calculations. Round your answers to 4 decimal places.) State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust Boom 0.40 0.60 0.0519 0.0231 02 =...