Consider the following information: State of Economy Boom Good Poor Bust a. Probability of State- of Economy .20 .50 .20 .10 Rate of Return if State Occurs Stock A Stock B Stock C .38 48 14 19 -.05 -.19 -.08 -.23 28 12 -.06 -.09 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.)
Consider the following information: State of Economy Boom Good Poor Bust a. Probability of State- of Economy .20 .50 .20 .10 Rate of Return if State Occurs Stock A Stock B Stock C .38 48 14 19 -.05 -.19 -.08 -.23 28 12 -.06 -.09 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.)
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 6P
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