Homework Help is Here – Start Your Trial Now!
Math
Statistics
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. Probability 0.3 0.5 State A В Вoom Normal 0.25 0.20 0.15 0.10 Recession 0.02 0.01 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability b. Calculate the expected return for Stock A and Stock B. (Round your answers to 1 decimal place.) Expected Return Stocks A Stocks B % c. Calculate the expected return for a portfolio that is invested 55% in A and 45% in B. (Round your answer to 2 decimal places.) Expected return %

An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. Probability 0.3 0.5 State A В Вoom Normal 0.25 0.20 0.15 0.10 Recession 0.02 0.01 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability b. Calculate the expected return for Stock A and Stock B. (Round your answers to 1 decimal place.) Expected Return Stocks A Stocks B % c. Calculate the expected return for a portfolio that is invested 55% in A and 45% in B. (Round your answer to 2 decimal places.) Expected return %

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
See similar textbooks
icon
Related questions
Question
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. Probability 0.3 State A В Boom 0.15 0.25 0.10 0.02 0.20 0.01 Normal 0.5 Recession a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability b. Calculate the expected return for Stock A and Stock B. (Round your answers to 1 decimal place.) Expected Return Stocks A % Stocks B % c. Calculate the expected return for a portfolio that is invested 55% in A and 45% in B. (Round your answer to 2 decimal places.) Expected return %
Transcribed Image Text:An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. Probability 0.3 State A В Boom 0.15 0.25 0.10 0.02 0.20 0.01 Normal 0.5 Recession a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability b. Calculate the expected return for Stock A and Stock B. (Round your answers to 1 decimal place.) Expected Return Stocks A % Stocks B % c. Calculate the expected return for a portfolio that is invested 55% in A and 45% in B. (Round your answer to 2 decimal places.) Expected return %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS