Question

What is the variance of the returns on a portfolio comprised of $4,200 of Stock G...

What is the variance of the returns on a portfolio comprised of $4,200 of Stock G and $5,300 of Stock H?

State of

Economy

Probability of

State of Economy

Rate of Return

if State Occurs

Stock G

Stock H

Boom

.18

.18

.08

Normal

.82

.14

.11

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
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
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
Given the following information: State of Economy Probability Rate of Return if State Occurs Stock G...
Given the following information: State of Economy Probability Rate of Return if State Occurs Stock G Rate of Return if State Occurs Stock H Boom 0.3 12% 25% Normal 0.5 15% 10% Recession 0.2 6% -18% Suppose you hold a portfolio with 60% invested in G and 40% invested in H. (1) What is the portfolio’s return if each state of the economy occurs, respectively? (2) What is the portfolio’s expected return? (3) What is the portfolio’s standard deviation?
Given the following information, what is the expected rate of return and the standard deviation of...
Given the following information, what is the expected rate of return and the standard deviation of a portfolio which is invested 30 percent in stock A, 20 percent in stock B, and 50 percent in stock C? State of Probability of                         Rate of Return if State Occurs              Economy           State of Economy   Stock A              Stock B                  Stock C    Boom                         .10                         .22                    .08                          .18 ..........................................Normal                  .90 .08 .14 .07
Given the following information: State of Economy Probability Rate of Return if State Occurs Stock G...
Given the following information: State of Economy Probability Rate of Return if State Occurs Stock G Rate of Return if State Occurs Stock H Boom 0.3 12% 25% Normal 0.5 15% 10% Recession 0.6 6% -18% Suppose you hold a portfolio with 60% invested in G and 40% invested in H. (1) What is the portfolio’s return if each state of the economy occurs, respectively? (2) What is the portfolio’s expected return? (3) What is the portfolio’s standard deviation? Is...
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....
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
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT