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a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calculations, Round the final answer to 6 decimal places.) Variance

a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calculations, Round the final answer to 6 decimal places.) Variance

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Consider the following information: State of Economy Probability of State of Economy 0.70 0.30 Boom Bust Rate of Return if State Occurs Stock B Stock C 9.21 0.39 0.02 -0.07 Stock A 0.14 0.11 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calculations, Round the final answer to 6 decimal places.) Variance
Transcribed Image Text:Consider the following information: State of Economy Probability of State of Economy 0.70 0.30 Boom Bust Rate of Return if State Occurs Stock B Stock C 9.21 0.39 0.02 -0.07 Stock A 0.14 0.11 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calculations, Round the final answer to 6 decimal places.) Variance
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