Consider the following information on three stocks A, B and C: State of Probability of Rate of Return Economy State Occurring A B C Boom .2 .20 .35 .60 Normal .6 .15 .12 .05 Bust .2 .01 -.25 -.50 If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio expected return? The variance? The standard deviation?
B. 4.30%, .08001, 28.29% |
A. 9.16%, .08001, 28.29% |
C. 9.16%, .03882, 19.70% |
D. 8.72%, .04612, 21.48% |
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Consider the following information on three stocks A, B and C: State of Probability of Rate...
Consider the following information on a portfolio of three stocks: State of Probability of Stock A Stock B Stock C Economy State of Economy Rate of Return Rate of Return Rate of Return Boom .14 .11 .36 .51 Normal .51 .19 .21 .29 Bust .35 .20 − .20 − .39 a. If your portfolio is invested 44 percent each in A and B and 12 percent in C, what is the portfolio’s expected return, the variance, and the standard deviation?...
Consider the following information on a portfolio of three stocks: Probability of State of Economy State of Economy Boom Normal Bust Stock A Stock B Stock C Rate of Return Rate of Return Rate of Return 47 .25 .23 -24 - 38 .05 .35 .52 34 25 23 a. If your portfolio is invested 42 percent each in A and B and 16 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? (Do not...
Consider the following information on a portfolio of three stocks: State of Probability of State of Economy Economy .13 Stock A Stock B Stock C Rate of Return Rate of Return Rate of Return .50 .20 .16 -21 Boom Normal .32 .02 10 .55 .32 Bust -35 a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? (Do not round...
Consider the following information: State of Probability of Rate of Return If State Occurs Economy State of Economy Stock A Stock B Stock C Boom .15 .350 .450 .330 Good .45 .120 .100 .170 Poor .35 .010 .020 − .050 Bust .05 − .110 − .250 − .090 Your portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio? Expected return % What is the variance...
Consider the following information on a portfolio of three stocks: State of Economy Probability of State of Economy Stock A Rate of Return Stock B Rate of Return Stock C Rate of Return Boom .15 .05 .21 .18 Normal .80 .08 .15 .07 Recession .05 .12 -.22 -.02 The portfolio is invested 35 percent in each Stock A and Stock B and 30 percent in Stock C. If the expected T-bill rate is 3.90 percent, what is the expected risk...
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?...
Consider the following information on a portfolio of three stocks: State of Economy Probability of State of Economy Stock A Rate of Return Stock B Rate of Return Stock C Rate of Return Boom .13 .10 .35 .42 Normal .52 .18 .30 .28 Bust .35 .19 –.29 –.38 Required: (a) If your portfolio is invested 42 percent each in A and B and 16 percent in C, what is the portfolio’s expected return, the variance, and the standard deviation? (Do...
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?
Consider the following information on a portfolio of three stocks Probability of State of State of Stock A Stock B Stock C Economy Rate of Return Rate of Return Rate of Return Economy 14 Boom 03 .33 .59 Normal 54 11 13 21 Bust .32 17 -12 -36 a. If your portfolio is invested 38 percent each in A and B and 24 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? (Do not...
Consider the following information: Rate of Return if State Occurs State of Probability of State Economy of Economy Stock A Stock B Stock C Boom .75 .07 .01 .27 Bust .25 .12 .19 –.05 Required: (a) What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return % (b) What is the variance of a portfolio invested...