Question

Using following information to complete the following questioner ECONONOMIC SCENARIO PROBABILITY ASSET 1 ASSET 2 RECESSION...

Using following information to complete the following questioner

ECONONOMIC SCENARIO PROBABILITY ASSET 1 ASSET 2
RECESSION 12.00% -14.27% 9.10%
NORMAL 47.00% 10.09% 5.85%
ABOVE NORMA 30.00% 14.56% 2.16%
BOOM 11.00% 21.74% -5.61%

1- Calculate Expected rate of forAsset 1

2-Calculate xpexted rate of Asset 2

3- Calculate the Standard Deviation for asset 1

4-Calculate the Stamdard Devoatopm for asset 2

5-Calculate the expected return for portifolio consists 62% of asset 1 and 38% of asset 2

6- Calculate the standard Deviation of a Portfolio that consists of 62% of asset 1 and 38/% of asset 2

Homework Answers

Answer #1

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