Consider the following information: Rate of Return if State Occurs Probability of State- State of Economy of Economy Stock A Stock B Stock C Boom .15 .33 .43 .34 Good .50 .20 .14 .08 Poor .30 -.01 -.09 -.03 Bust .05 -.17 -.29 -10 a. Your portfolio is invested 32 percent each in A and C, and 36 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % a. Expected return b-1. Variance b-2. Standard deviation %
Consider the following information: Rate of Return if State Occurs Probability of State- State of Economy of Economy Stock A Stock B Stock C Boom .15 .33 .43 .34 Good .50 .20 .14 .08 Poor .30 -.01 -.09 -.03 Bust .05 -.17 -.29 -10 a. Your portfolio is invested 32 percent each in A and C, and 36 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b-1. What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.) b-2. What is the standard deviation? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % a. Expected return b-1. Variance b-2. Standard deviation %
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...
Related questions
Question
Bhupatbhai
![Consider the following information:
Rate of Return if State Occurs
Probability of State-
State of Economy
of Economy
Stock A
Stock B
Stock C
Boom
.15
.33
.43
.34
Good
.50
.20
.14
.08
Poor
.30
-.01
-.09
-.03
Bust
.05
-.17
-.29
-10
a. Your portfolio is invested 32 percent each in A and C, and 36 percent in B. What is
the expected return of the portfolio? (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b-1. What is the variance of this portfolio? (Do not round intermediate calculations and
round your answer to 5 decimal places, e.g., .16161.)
b-2. What is the standard deviation? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
%
a. Expected return
b-1. Variance
b-2. Standard deviation
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3da7d364-2fff-4deb-ab79-7e0b6de8e0b8%2F2be95659-5742-43bf-82f1-4e4dfa5f356c%2F45iy9xp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following information:
Rate of Return if State Occurs
Probability of State-
State of Economy
of Economy
Stock A
Stock B
Stock C
Boom
.15
.33
.43
.34
Good
.50
.20
.14
.08
Poor
.30
-.01
-.09
-.03
Bust
.05
-.17
-.29
-10
a. Your portfolio is invested 32 percent each in A and C, and 36 percent in B. What is
the expected return of the portfolio? (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b-1. What is the variance of this portfolio? (Do not round intermediate calculations and
round your answer to 5 decimal places, e.g., .16161.)
b-2. What is the standard deviation? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
%
a. Expected return
b-1. Variance
b-2. Standard deviation
%
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