Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.2 23% Slow Growth 0.6 14% Recession 0.2 −30% Multiple Choice 12.5 percent 7.5 percent 3.5 percent 7.0 percent

Vijay

5 Consider the following information: Probability of State of State of Economy Boom Good Poor Bust Economy 15 .45 .35 .05 a. Rate of Return if State Occurs a. Expected return b-1. Variance b-2. Standard deviation Stock A Stock B Stock C .36 46 .26 .21 .17 10 -.03 -.17 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 intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % -.06 -.21 % -.04 -.07

klp.3

470 - 35 you have concluded that the following relationships are possible next year: economic status         probability      rate of return weak economy              .15                    -5% static economy              .6                         5% strong economy            .25                      15%   What is the standard deviation of the rate of return for the one year period? a. .65 % b. 1.45% c. 4% d. 6.25% e. 6.4%

Manshuk

can you help me with question b please

Ef 43.

Computer the expected return given these three economic states, their likelihoods, and the potential returns. Economic State            Probability      Return      Fast Growth                        0.40                 25% Slow Growth                       0.55                 12% Recession                           0.05                -50%   Multiple Choice ___ -4.3 percent ___ 14.1 percent ___ 19.1 percent ___ 29.0 percent

Could part 2 be answered