Question

Given the following information, calculate the expected return and standard deviation for a portfolio that has...

Given the following information, calculate the expected return and standard deviation for a portfolio that has 35 percent invested in Stock A, 38 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Returns
State of Economy Probability of State of Economy Stock A Stock B Stock C
Boom 0.50 12 % 21 % 22 %
Bust 0.50 13 0 −13

Expected Return

Standard Deviation

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
Given the following information, calculate the expected return and standard deviation for a portfolio that has...
Given the following information, calculate the expected return and standard deviation for a portfolio that has 49 percent invested in Stock A, 30 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Returns State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .70 16 % 23 % 26 % Bust .30 8 0 −8
Problem 13-10 Returns and Standard Deviations [LO1] Consider the following information:    Rate of Return If...
Problem 13-10 Returns and Standard Deviations [LO1] 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 .20 .38 .48 .28   Good .50 .14 .19 .12   Poor .20 −.05 −.08 −.06   Bust .10 −.19 −.23 −.09    a. Your portfolio is invested 22 percent each in A and C, and 56 percent in B. What is the expected return of the portfolio? (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 .25 .19 .35 .28 Good .30 .14 .13 .14 Poor .10 .00 −.10 −.05 Bust .35 −.20 −.28 −.13 a. Your portfolio is invested 35 percent each in Stocks A and C and 30 percent in Stock B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as...
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 .35 .20 .41 .25 Good .25 .11 .16 .15 Poor .20 −.03 −.13 −.02 Bust .20 −.17 −.20 −.11 a. Your portfolio is invested 30 percent each in Stocks A and C and 40 percent in Stock B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as...
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 .12 .03 .33 .49   Normal .54 .11 .23 .21   Bust .34 .17 –.22 –.36 Required: (a) If your portfolio is invested 38 percent each in A and B and 24 percent in C, what is the portfolio’s expected return, the variance, and the standard deviation? (Do...
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 .14 .05 .35 .47   Normal .52 .13 .25 .23   Bust .34 .19 –.24 –.38 Required: (a) If your portfolio is invested 42 percent each in A and B and 16 percent in C, what is the portfolio’s expected return, the variance, and the standard deviation? (Do...
Consider the following information: State of Probability of Rate of Return If State Occurs Economy State...
Consider the following information: State of Probability of Rate of Return If State Occurs Economy State of Economy Stock A Stock B Stock C Boom .19 .366 .466 .346 Good .41 .136 .116 .186 Poor .31 .026 .036 − .091 Bust .09 − .126 − .266 − .106 Your portfolio is invested 31 percent each in A and C and 38 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your...
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
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 .20 .18 .45 .23 Good .20 .16 .18 .13 Poor .40 −.05 −.15 .02 Bust .20 −.15 −.35 −.11 a. Your portfolio is invested 20 percent each in Stocks A and C and 60 percent in Stock B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as...
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 0.35 0.18 0.29 0.31 Good 0.15 0.17 0.10 0.11 Poor 0.40 0.03 –0.07 –0.08 Bust 0.10 –0.23 –0.22 –0.13 a. Your portfolio is invested 35 percent each in A and C and 30 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...