Question

Your portfolio is invested 20 percent each in A and C, and 60 percent in B....

Your portfolio is invested 20 percent each in A and C, and 60 percent in B. What is the standard deviation of the portfolio?

Rate of Return if State Occurs
State of Economy Probability of State of Economy Stock A Stock B Stock C
Boom .15 .37 .47 .27
Good .45 .22 .18 .11
Poor .35 -.18 -.22 -.08
Bust .05 -.04 -.07 -.05

Multiple Choice

  • 10.96%

  • 21.36%

  • 25.63%

  • 17.26%

  • 29.78%

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
What is the variance of the returns on a portfolio that is invested 40 percent in...
What is the variance of the returns on a portfolio that is invested 40 percent in Stock S and 60 percent in Stock T? State of Economy Probability of State of Economy Rate of Return if State Occurs Boom .06 .22 .18 Normal .92 .15 .14 Bust .02 − .26 .09 Multiple Choice .00083 00136 00107 00091 00118
If your portfolio is invested 30 percent each in A and B and 40 percent in...
If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio’s expected return and the variance? Show work if possible. State of Economy Probability of State of Economy Stock A Return (%) Stock B Return (%) Stock C Return (%) Boom 0.10 6% 30% 27% Normal 0.50 12% 22% 13% Recession 0.40 18% -14% -40%
What is the expected return of an equally weighted portfolio comprised of the following three stocks?...
What is the expected return of an equally weighted portfolio comprised of the following three stocks? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom .25 .19 .13 .07 Normal .72 .15 .05 .13 Bust .03 − .29 − .14 .22 A. 9.82 percent B. 9.48 percent C. 10.96 percent D. 10.37 percent
What is the expected return of an equally weighted portfolio comprised of the following three stocks?...
What is the expected return of an equally weighted portfolio comprised of the following three stocks? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom .25 .19 .13 .07 Normal .72 .15 .05 .13 Bust .03 − .29 − .14 .22 A. 10.37 percent B. 10.96 percent C. 9.48 percent D. 9.82 percent
Derive the standard deviation of the returns on a portfolio that is invested in stocks x,...
Derive the standard deviation of the returns on a portfolio that is invested in stocks x, y, and z , where twenty percent of the portfolio is invested in stock x and 35 percent is invested in Stock z. State of Economy Probability of State of Economy Rate of Return if State Occurs Stock x Stock y Stock z Boom .04 .17 .09 .09 Normal .81 .08 .06 .08 Recession .15 − .24 .02 − .13
Derive the standard deviation of the returns on a portfolio that is invested in stocks x,...
Derive the standard deviation of the returns on a portfolio that is invested in stocks x, y, and z , where twenty percent of the portfolio is invested in stock x and 35 percent is invested in Stock z. State of Economy Probability of State of Economy Rate of Return if State Occurs Stock x Stock y Stock z Boom .04 .17 .09 .09 Normal .81 .08 .06 .08 Recession .15 − .24 .02 − .13 1. 6.31 percent 2....
Derive the standard deviation of the returns on a portfolio that is invested in stocks x,...
Derive the standard deviation of the returns on a portfolio that is invested in stocks x, y, and z , where twenty percent of the portfolio is invested in stock x and 35 percent is invested in Stock z. State of Economy Probability of State of Economy Rate of Return if State Occurs Stock x Stock y Stock z Boom .04 .17 .09 .09 Normal .81 .08 .06 .08 Recession .15 − .24 .02 − .13 1. 6.49 percent 2....
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 .15 .31 .41 .21   Good .60 .16 .12 .10   Poor .20 −.03 −.06 −.04   Bust .05 −.11 −.16 −.08    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?   Expected return % b-1 What is the variance of...
What is the standard deviation of the returns on a portfolio that is invested 37 percent...
What is the standard deviation of the returns on a portfolio that is invested 37 percent in Stock Q and 63 percent in Stock R? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock Q Stock R Boom .15 .16 .15 Normal .85 .09 .13 Multiple Choice 1.37 percent 2.47 percent 1.63 percent 1.28 percent 2.09 percent
Consider the following information on a portfolio of three stocks: State of Economy Probability of State...
Consider the following information on a portfolio of three stocks: State of Economy Probability of State of Economy Stock A Rate of Return Stock B Rate of Return Stock C Rate of Return Boom .15 .05 .21 .18 Normal .80 .08 .15 .07 Recession .05 .12 -.22 -.02 The portfolio is invested 35 percent in each Stock A and Stock B and 30 percent in Stock C. If the expected T-bill rate is 3.90 percent, what is the expected risk...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT