Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom 0.30 0.23 0.31 0.30 Good 0.15 0.16 0.11 0.12 Poor 0.30 0.02 -0.08 -0.07 Bust 0.25 -0.22 -0.24 -0.13 a. Your portfolio is invested 25 percent each in Stocks A and C and 50 percent in Stock B. What is the expected return of the portfolio? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b-1. What is the variance of this portfolio? Note: Do not round intermediate calculations. Round your answer to 5 decimal places. b-2. What is the standard deviation? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom 0.30 0.23 0.31 0.30 Good 0.15 0.16 0.11 0.12 Poor 0.30 0.02 -0.08 -0.07 Bust 0.25 -0.22 -0.24 -0.13 a. Your portfolio is invested 25 percent each in Stocks A and C and 50 percent in Stock B. What is the expected return of the portfolio? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b-1. What is the variance of this portfolio? Note: Do not round intermediate calculations. Round your answer to 5 decimal places. b-2. What is the standard deviation? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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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Transcribed Image Text:Consider the following information: State of Economy Probability of State of Economy Rate of Return
if State Occurs Stock A Stock B Stock C Boom 0.30 0.23 0.31 0.30 Good 0.15 0.16 0.11 0.12 Poor
0.30 0.02 -0.08 -0.07 Bust 0.25 -0.22 -0.24 -0.13 a. Your portfolio is invested 25 percent each in
Stocks A and C and 50 percent in Stock B. What is the expected return of the portfolio? Note: Do not
round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b-1.
What is the variance of this portfolio? Note: Do not round intermediate calculations. Round your
answer to 5 decimal places. b-2. What is the standard deviation? Note: Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal places.
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