a What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a What is the expected return of asset A? Data Table (Round to four decimal places.) (Click on the following iconp in order to copy its contents into a spreadsheet) Return on Asset C in Return on Return on State of Probability Asset A in Asset B in Economy of State State State State 0.22 0.32 0.04 0.04 Boom 0.35 Enter your answer in the answer box and 0.07 0.19 0 51 0 14 Normal Recession 004 -0.04 -0.22 8 parts
a What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a What is the expected return of asset A? Data Table (Round to four decimal places.) (Click on the following iconp in order to copy its contents into a spreadsheet) Return on Asset C in Return on Return on State of Probability Asset A in Asset B in Economy of State State State State 0.22 0.32 0.04 0.04 Boom 0.35 Enter your answer in the answer box and 0.07 0.19 0 51 0 14 Normal Recession 004 -0.04 -0.22 8 parts
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Expected return and standard deviation. Use the following information to answer the questions:
a What is the expected returm of each asset?
b. What is the variance of each asset?
c. What is the standard deviation of each asset?
Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only
apply for the answers you will type.
Incorrect: 0
a. What is the expected return of asset A?
1 Data Table
(Round to four decimal places.)
(Click on the following icon o in order to copy its contents into a spreadsheet.)
Return on
Return on
Return on
Probability
Asset C in
Asset A in
State
State of
Asset B in
Economy
of State
State
State
Воom
0.35
0.04
0.22
0.32
Enter your answer in the answer box and
Normal
0.51
0.04
0.07
0.19
Recession
0 14
0.04
- 0.04
-0.22
8 parts
remaining
SUS
&
2#
8.
6.
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