Consider the following information: State of Economy Boom Good Poor Bust Probability of State- of Economy .15 .45 .30 .10 a. Expected return b-1. Variance b-2. Standard deviation Rate of Return if State Occurs Stock A Stock B Stock C .38 .48 .28 .22 .19 .15 -.06 -.11 -.04 -.16 a. Your portfolio is invested 24 percent each in A and C, and 52 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.) % -.09 -.34 %
Consider the following information: State of Economy Boom Good Poor Bust Probability of State- of Economy .15 .45 .30 .10 a. Expected return b-1. Variance b-2. Standard deviation Rate of Return if State Occurs Stock A Stock B Stock C .38 .48 .28 .22 .19 .15 -.06 -.11 -.04 -.16 a. Your portfolio is invested 24 percent each in A and C, and 52 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.) % -.09 -.34 %
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
Related questions
Question
![Consider the following information:
State of Economy
Boom
Good
Poor
Bust
Probability of State-
of Economy
a. Expected return
b-1. Variance
b-2. Standard deviation
.15
.45
.30
.10
Rate of Return if State Occurs
Stock A Stock B Stock C
.38
.48
.22
.19
-.09
-.34
-.04
-.16
a. Your portfolio is invested 24 percent each in A and C, and 52 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.)
%
.28
.15
-.06
-.11
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe672aae4-3eba-4de6-b867-15f94527938e%2F37bde84d-188f-4baa-9ba7-e4957b596700%2Fd7ctyqb_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the following information:
State of Economy
Boom
Good
Poor
Bust
Probability of State-
of Economy
a. Expected return
b-1. Variance
b-2. Standard deviation
.15
.45
.30
.10
Rate of Return if State Occurs
Stock A Stock B Stock C
.38
.48
.22
.19
-.09
-.34
-.04
-.16
a. Your portfolio is invested 24 percent each in A and C, and 52 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.)
%
.28
.15
-.06
-.11
%
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