Consider the following information: |
Rate of Return if State Occurs |
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State of |
Probability of |
|||||||||||
Economy |
State of Economy |
Stock A |
Stock B |
Stock C |
||||||||
Boom |
0.58 |
0.07 |
0.15 |
0.33 |
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Bust |
0.42 |
0.16 |
0.06 |
− |
0.06 |
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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 invested 20 percent each in A and B and 60 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places. (e.g., 32.161616)) |
Variance |
|
Consider the following information: Rate of Return if State Occurs State of Probability of Economy...
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 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: 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 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 Economy Economy Rate of Return If State Occurs Probability of - State of Stock A Stock B Stock C 361 461 341 40 131 .111 1 81 021 031 -067 -121 -261 -101 20 Boom Good Poor Bust a. Your portfolio is invested 31 percent each In A and C and 38 percent in B. What is the expected return of the portfolio? (Do not round Intermediate calculations and enter your answer as a...
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 0.25 0.23 0.47 0.22 Good 0.15 0.15 0.19 0.12 Poor 0.30 –0.06 –0.14 0.01 Bust 0.30 –0.14 –0.34 –0.11 a. Your portfolio is invested 35 percent each in A and C and 30 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...
Problem 13-9 Returns and Variances (L01, 2) Consider the following information: State of Economy Boom Bust Probability of State of Economy 0.58 0.42 Rate of Return if State Occurs Stock A Stock B Stock C 0.07 0.15 0.33 0.15 0.05 -0.07 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return % 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 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...
Consider the following information: Rate of Return If State Occurs State of Economy Probability of State of Economy .15 .55 .33 Stock A Stock B Stock C .45 .11 .10 .02 -.05 -.12 - 25 -09 Boom Good Poor Bust .33 .17 20 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? (Do rot round intermediate calculations and enter your answer as a percent...