Question

consider the following information: state of economy. probability of                                

consider the following information:
state of economy. probability of
                                  state of economy

boom.                        0.58            
bust.                           0.42
rate of return if state occurs
stock A.        stock B.           stock C
0.14.                0.22.                 0.40
0.14.                0.02.                - 0.09

a: what is the expected return on an equally weighted portfolio of these three stocks?
b: what is the variance of a portfolio invested 25% each in A and B and 50% in C?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following information:    Rate of Return if State Occurs State of Economy Probability of...
Consider the following information:    Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.74 0.07 0.29 0.09 Bust 0.26 0.15 0.15 0.05    Requirement 1: What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.) Requirement 2: What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?...
Consider the following information:    Rate of Return if State Occurs State of Economy Probability of...
Consider the following information:    Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.70 0.13 0.11 0.13 Bust 0.30 0.09 0.13 0.03    Requirement 1: What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.)    Requirement 2: What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.70 0.29 0.21 0.27 Bust 0.30 0.09 0.13 0.07 Requirement 1: What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.) Requirement 2: What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? (Do not...
Consider the following information about three stocks: State of Economy Probability of State of Economy Stock...
Consider the following information about three stocks: State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.22 0.30 0.42 0.58 Normal 0.46 0.23 0.21 0.19 Bust 0.32 0.01 -0.22 -0.50 a-1. If your portfolio is invested 25 percent each in A and B and 50 percent in C, what is the portfolio expected return? a-2. What is the variance? a-3. What is the standard deviation? b. If the expected T-bill rate is 4.30 percent,...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.25 0.18 0.32 0.25 Good 0.20 0.12 0.22 0.09 Poor 0.40 –0.03 –0.11 –0.02 Bust 0.15 –0.11 –0.16 –0.10 a. Your portfolio is invested 30 percent each in A and C and 40 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.72 0.25 0.11 0.07 Bust 0.28 0.17 0.07 0.11 Requirement 1: What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.) Requirement 2: What is the variance of a portfolio invested 10 percent each in A and B and 80 percent in C? (Do not...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.66 0.27 0.33 0.29 Bust 0.34 0.19 0.15 0.11 Requirement 1: What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.) Requirement 2: What is the variance of a portfolio invested 10 percent each in A and B and 80 percent in C? (Do not...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.40 0.18 0.40 0.29 Good 0.25 0.15 0.22 0.11 Poor 0.30 0.01 –0.09 –0.06 Bust 0.05 –0.07 –0.24 –0.09 a. Your portfolio is invested 20 percent each in A and C and 60 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.20 0.19 0.46 0.32 Good 0.40 0.12 0.19 0.14 Poor 0.10 0.04 –0.09 –0.05 Bust 0.30 –0.04 –0.30 –0.09 a. Your portfolio is invested 20 percent each in A and C and 60 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.10 0.18 0.48 0.33 Good 0.30 0.11 0.18 0.15 Poor 0.40 0.05 ?0.09 ?0.05 Bust 0.20 ?0.03 ?0.32 ?0.09 a. Your portfolio is invested 25 percent each in A and C and 50 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT