Question

Given the following information about the returns of stocks A, B, and C, what is the...

Given the following information about the returns of stocks A, B, and C, what is the expected return of a portfolio invested 30% in stock A, 40% in stock B, and 30% in stock C? Enter answer in percents

State of Economy Probability Stock A Stock B Stock C

Boom 0.19 0.36 0.24 0.37

Good 0.22 0.21 0.12 0.24

Poor 0.28 0.06 0 0.02

Bust -- -0.1 -0.27 -0.25

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following information on Stocks A, B, C and their returns (in decimals) in each...
Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom 20% 0.26 0.18 0.17 Good 45% 0.12 0.08 0.09 Poor 25% 0.04 0.02 0.03 Bust 10% -0.1 -0.04 -0.01 If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent?
Consider the following information on Stocks A, B, C and their returns (in decimals) in each...
Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom 20% 0.35 0.21 0.16 Good 45% 0.13 0.09 0.07 Poor 25% 0.02 0.03 0.03 Bust 10% -0.1 -0.05 -0.03 If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent? Answer to two decimals, carry intermediate calcs. to at least four...
Consider the following information on Stocks A, B, C and their returns (in decimals) in each...
Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom 20% 0.32 0.2 0.17 Good 45% 0.12 0.09 0.08 Poor 25% 0.04 0.01 0.03 Bust 10% -0.08 -0.06 -0.01 If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent? Answer to two decimals, carry intermediate calcs. to at least four...
Please solve algebraically, not with excel: Consider the following information on Stocks A, B, C and...
Please solve algebraically, not with excel: Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom 20% 0.27 0.23 0.15 Good 45% 0.15 0.11 0.09 Poor 25% 0.03 0.02 0.04 Bust 10% -0.1 -0.02 -0.03 If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent? Answer to two decimals, carry...
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 Probability of   Economy...
Consider the following information:    Rate of Return If State Occurs   State of Probability of   Economy State of Economy Stock A Stock B Stock C   Boom 0.72 0.06 0.11 0.17 Bust 0.28 0.19 -0.04 0.23    a. What is the variance of a portfolio invested 30 percent each in A and B, and 40 percent in C?
Stocks A and B have the following​ returns: Stock A Stock B 1 0.09 0.07 2...
Stocks A and B have the following​ returns: Stock A Stock B 1 0.09 0.07 2 0.06 0.01 3 0.12 0.06 4 −0.02    0.02 5 0.08 −0.04    a. What are the expected returns of the two​ stocks? b. What are the standard deviations of the returns of the two​ stocks? c. If their correlation is 0.47 what is the expected return and standard deviation of a portfolio of 75​% stock A and 25​% stock​ B?
Answer part a and b of question. (I will give a negative rating if you solved...
Answer part a and b of question. (I will give a negative rating if you solved just one part) a) Find the 85th Percentile of the data set. b) For a population represented by the sample data sets, suppose a vehicle is travelling at 40mph while the driver shifts his focus and fixates on a road object. Estimate a value for the distance traveled during the process that could be exceeded by this driver with a probability of 15%. DATA...
Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 -0.05 0.08...
Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 -0.05 0.08 -0.02 Bust 0.68 0.07 -0.12 0.22 What is the expected return of a portfolio that has invested $12,403 in Stock A, $15,943 in Stock B, and   $18,914 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).
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 0.30 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 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...