a. What is the expected return of each asset? b. What is the variance and the standard deviation c. What is the expected return of a portfolio with 1 d. What is the portfolio's variance and standard de Data Table Hint Make sure to round all intermediate calculatio (Click on the following icon D in order to copy its contents into a spreadsheet.) a. What is the expected return of asset J? (Round to four decimal places.) Roturn on Return on Return on State of Economy Boom Probability of State Asset J in State Asset K in Stale Asset L in State 0.28 0.070 0.260 0.180 0.200 Growth 0.37 0.070 0.140 Stagnant 0.25 0.070 0.040 0.060 Recession 0.10 0.070 <-0.100 -0.210

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Expected retun and standard deviation. Use the following information to answer the questions:
a. What is the expected return of each asset?
b. What is the variance and the standard deviation
c. What is the expected return of a portfolio with 1 1 Data Table
d. What is the portfolio's variance and standard de
- X
Hint Make sure to round all intermediate calculatio
Swers yo
(Click on the following icon D in order to copy its contents into a spreadsheet.)
a. What is the expected return of asset J?
(Round to four decimal places.)
Return on
Return on
Return on
Probability
of State
State of
Asset J in
Asset Kin
State
0.200
0.140
0.040
Asset L in
Economy
State
State
Вoom
0.28
0.070
0.260
0.180
Growth
0.37
0.25
0.070
Stagnant
0.070
0.060
-0.210
Recession
0.10
0.070
-0.100
Print
Done
Transcribed Image Text:Expected retun and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance and the standard deviation c. What is the expected return of a portfolio with 1 1 Data Table d. What is the portfolio's variance and standard de - X Hint Make sure to round all intermediate calculatio Swers yo (Click on the following icon D in order to copy its contents into a spreadsheet.) a. What is the expected return of asset J? (Round to four decimal places.) Return on Return on Return on Probability of State State of Asset J in Asset Kin State 0.200 0.140 0.040 Asset L in Economy State State Вoom 0.28 0.070 0.260 0.180 Growth 0.37 0.25 0.070 Stagnant 0.070 0.060 -0.210 Recession 0.10 0.070 -0.100 Print Done
Expected return and standard deviation. Use the following information to answer the questions:
a. What is the expected retum of each asset?
b. What is the variance and the standard deviation of each asset?
c. What is the expected return of a portfolio with 11% in asset J, 49% in asset K, and 40% in asset L?
d. What is the portfolio's variance and standard deviation using the same asset weights from part (c)?
Hint Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.
a. What is the expected return of asset J?
(Round to four decimal places.)
Transcribed Image Text:Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected retum of each asset? b. What is the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with 11% in asset J, 49% in asset K, and 40% in asset L? d. What is the portfolio's variance and standard deviation using the same asset weights from part (c)? Hint Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a. What is the expected return of asset J? (Round to four decimal places.)
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