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 20 percent each in A and B and 60 percent in C? (Do not round intermediate calculations. Round your answer to 5 decimal places (e.g., 32.16161).) Variance of a portfolio
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Consider the following information: Rate of Return if State Occurs State of Probability of State Economy of Economy Stoc...
Consider the following information: Rate of Return if State Occurs Probability of State of Economy State of Economy Boom Stock A Stock B Stock C 66 09 03 .34 Bust 34 23 29 -14 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 21 percent each...
Consider the following information: State of Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Stock C Boom .70 .08 .02 .28 Bust .17 -.08 .30 23 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return 0 % b. What is the variance of a portfolio...
Consider the following information: Rate of Return if State Occurs Probability of State of Economy .74 26 Stock A Stock B State of Economy Boom Bust Stock C .06 32 21 27 -12 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 29 percent each in...
Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .55 .15 .22 .42 Bust .45 .14 .04 − .05 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % b. What is the variance of...
Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom 0.58 0.07 0.15 0.33 Bust 0.42 0.16 0.06 − 0.06 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Expected return % b. What is the variance of a portfolio...
Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .20 .38 .48 .28 Good .50 .14 .19 .12 Poor .20 – .05 – .08 – .06 Bust .10 – .19 – .23 – .09 a. Your portfolio is invested 22 percent each in A and C, and 56 percent in B. What is the expected return of the portfolio? (Do not round...
Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A Stock B Stock C .55 .06 14 Boom Bust .45 .34 -.07 10 .02 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 22 percent each in A and B...
Consider the following information: Rate of Return If State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy .15 45 Stock A .37 .22 -.04 -.18 Stock B .47 .18 Stock C .27 .11 -.05 -.08 .35 -.07 .05 -.22 a. Your portfolio is invested 20 percent each in A and C, and 60 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculaitons. Enter your answer as a percent...
Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A Stock B Stock C .58 Boom Bust .07 .15 .33 .42 .16 .06 -.06 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 20 percent each...
Consider the following information: State of Economy Boom Bust Probability of State of Economy .70 Rate of Return if State Occurs Stock A Stock B Stock C 02 .28 .17 .08 .30 .23 -.08 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return b. What is the variance of a portfolio invested 25...