What is the standard deviation of the returns on a portfolio that is invested in Stocks A, B, and C? Twenty percent of the portfolio is invested in Stock A and 35 percent is invested in Stock C. St...
What is the standard deviation of the returns on a portfolio that is invested in Stocks A, B, and C? Twenty percent of the portfolio is invested in Stock A and 35 percent is invested in Stock C.
| State of Economy |
Probability
of State of Economy |
Rate of Return if State Occurs |
||||||||
| Stock A | Stock B | Stock C | ||||||||
| Boom | .04 | .17 | .09 | .09 | ||||||
| Normal | .81 | .08 | .06 | .08 | ||||||
| Recession | .15 | − | .24 | .02 | − | .13 | ||||
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What is the standard deviation of the returns on a portfolio that is invested in Stocks A, B, and C? Twenty percent of the portfolio is invested in Stock A and 35 percent is invested in Stock C. St...
What is the standard deviation of the returns on a portfolio that is invested in Stocks...
What is the standard deviation of the returns on a portfolio that is invested in Stocks A, B, and C? Twenty percent of the portfolio is invested in Stock A and 35 percent is invested in Stock C. Probability of State of Rate of Return State of Economy Economy if State Occurs Stock Stock A Stock B Boom 04 .17 .09 .09 Normal .81 .08 .06 Recession .15 - 24 .02 - a. 3.28% O b. 4.91% OC 5.65% O...
2) What is the expected return and standard deviation of a portfolio that is invested in...
2) What is the expected return and standard deviation of a portfolio that is invested in stocks A, B, and C? Twenty five percent of the portfolio is invested in stock A, 40 percent is invested in stock C, and the remaining is invested in stock B. (20 pts) Probability of State of Economy State of Economy Boom Normal Recession 5% Returns if State Occurs Stock A Stock B Stock C 17% 6% 22% 8% 10% 15% -3% 19% -25%...
4. Given the following information, what is the standard deviation of the returns on a portfolio...
4. Given the following information, what is the standard deviation of the returns on a portfolio that is invested 35 percent in both Stocks A and C, and 30 percent in Stock B?* State of Probability of Rate of Return If State Occurs Economy State of Economy Stock AStockB Stock C 16.4% 31.8% Boom .20 11.4% Normal 7.3% 11.2% .80 19.6%
Returns and Standard Deviations - Consider the following information: State of Economy Probability of State of...
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 .15 ....
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...
What is the variance of the returns on a portfolio that is invested 65 percent in...
What is the variance of the returns on a portfolio that is invested 65 percent in stock Q and 35 percent in stock R? State of Economy Probability of State of Economy Returns if State Occurs Stock Q Stock R Boom 25% 15% 8% Normal 75% 9% 12%
Given the following information, what is the standard deviation of the returns on a portfolio...
Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, andthe remainder in stock C?State of Economy Prob. of State of Economy Rate of Return is state occursNormal .65 Stock A-14.3% Stock B- 16.7% Stock C- 18.2%Recession .35 -9.8% 5.4% -26.9%
Consider the following information on three stocks: State of Probability of Returns if State occurs Returns...
Consider the following information on three stocks: State of Probability of Returns if State occurs Returns if State occurs Returns if State occurs Economy State of Economy Stock A Stock B Stock C Boom 45% 42% 35% 65% Normal 50% 31% 18% 4% Bust 5% 17% -17% -64% A portfolio is invested 35 percent each in stock A and stock B and 30 percent in stock C. What is the expected risk premium on the portfolio if the expected T-bill...
19. You own the following portfolio of stocks. What is the portfolio weight of stock C?...
19. You own the following portfolio of stocks. What is the portfolio weight of stock C? Number Stock of Shares 500 200 600 100 Price per Share $14 $23 $18 $47 A. 39.85 percent B. 42.86 percent C. 44.41 percent D. 48.09 percent E. 52.65 percent 20. What is the variance of the returns on a portfolio that is invested 60 percent in stock S and 40 percent in stock T? State of Economy Boom Normal Probability of State of...
6. Calculating Expected Return Based on the following information, calculate the expected return.
6. Calculating Expected Return Based on the following information, calculate the expected return. State of EconomyProbability of State of EconomyRate of Return if State OccursRecession.15-.12Normal.60.10Boom.25.277. Calculating Returns and Standard Deviations Based on the following information, calculate the expected returns and standard deviations for the two stocks. State of EconomyProbability of State of EconomyRate of Return if State OccursStock AStock BRecession.10.02-.30Normal.50.10.18Boom.40.15.3110. Returns and Standard Deviations Consider the following information: State of EconomyProbability of State of EconomyRate of Return if State OccursStock AStock BStock CBoom.15.33.45.33Good.55.11.10.17Poor.20.02.02-.05Bust.10-.12-.25-.09a. Your...
What is the standard deviation of the returns on a portfolio that is invested in Stocks A, B, and C? Twenty percent of the portfolio is invested in Stock A and 35 percent is invested in Stock C. Probability of State of Rate of Return State of Economy Economy if State Occurs Stock Stock A Stock B Boom 04 .17 .09 .09 Normal .81 .08 .06 Recession .15 - 24 .02 - a. 3.28% O b. 4.91% OC 5.65% O...
2) What is the expected return and standard deviation of a portfolio that is invested in stocks A, B, and C? Twenty five percent of the portfolio is invested in stock A, 40 percent is invested in stock C, and the remaining is invested in stock B. (20 pts) Probability of State of Economy State of Economy Boom Normal Recession 5% Returns if State Occurs Stock A Stock B Stock C 17% 6% 22% 8% 10% 15% -3% 19% -25%...
4. Given the following information, what is the standard deviation of the returns on a portfolio that is invested 35 percent in both Stocks A and C, and 30 percent in Stock B?* State of Probability of Rate of Return If State Occurs Economy State of Economy Stock AStockB Stock C 16.4% 31.8% Boom .20 11.4% Normal 7.3% 11.2% .80 19.6%
Consider the following information on three stocks: State of Probability of Returns if State occurs Returns if State occurs Returns if State occurs Economy State of Economy Stock A Stock B Stock C Boom 45% 42% 35% 65% Normal 50% 31% 18% 4% Bust 5% 17% -17% -64% A portfolio is invested 35 percent each in stock A and stock B and 30 percent in stock C. What is the expected risk premium on the portfolio if the expected T-bill...
19. You own the following portfolio of stocks. What is the portfolio weight of stock C? Number Stock of Shares 500 200 600 100 Price per Share $14 $23 $18 $47 A. 39.85 percent B. 42.86 percent C. 44.41 percent D. 48.09 percent E. 52.65 percent 20. What is the variance of the returns on a portfolio that is invested 60 percent in stock S and 40 percent in stock T? State of Economy Boom Normal Probability of State of...
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