Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
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Consider the following information about three stocks: Probability of Rate of Return if State of Economy...
Consider the following information about three stocks: State of Economy Probability of State Rate of Return if State Occurs Stock A Stock B 0.24 0.36 0.17 0.13 0.00 -0.28 Boom Normal Bust 0.35 0.50 0.15 Stock C 0.55 0.09 -0.45 a. What is the expected return of Stock A? The standard deviation? (6 points) b. If your portfolio is invested 40% each in A and B and 20% in C, what is the portfolio expected return? The standard deviation? (13...
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 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: 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?
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 0.70 0.07 0.09 0.29 Bust 0.30 0.19 0.09 0.17 Requirement 1: What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.) (Click to select)15.00%17.50%27.03%29.80%9.27% Requirement 2: What is the variance of a portfolio invested 20 percent each in A and B and...
onsider the following information about three stocks: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom 0.20 0.20 0.32 0.54 Normal 0.45 0.18 0.16 0.14 Bust 0.35 0.02 −0.34 −0.42 a-1. If your portfolio is invested 40% each in A and B and 20% in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.)...
Consider the following information: Rate of Return if State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy 0.10 0.60 0.25 0.05 Stock A 0.34 0.19 - 0.01 - 0.15 Stock B 0.44 0.15 - 0.09 - 0.19 Stock 0.24 0.08 - 0.07 - 0.11 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? (Round your answer to 2 decimal...
Consider the following information: Rate of Return if State Occurs Probability of State of Economy 0.76 State of Economy Stock A Stock B Stock C 0.25 Вoom 0.33 0.09 0.15 Bust 0.24 0.19 -0.01 Requirement 1 What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.) (Click to select) Requirement 2: What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in...
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%...
Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.76 0.24 Stock A 0.05 0.11 Stock B 0.33 0.19 Stock C 0.33 0.03 a. What is the expected return on an equally weighted portfolio of these three stocks?