The table below shows the expected rates of return for three stocks and their weights in some portfolio: State Recession Normal Boom 4+ decimals Submit Portfolio weights Probability 4+ decimals 0.2 0.5 0.3 Submit Stock A 0.5 Part 1 What is the expected portfolio return? 0.01 0.04 0.09 Stock B 0.2 Expected returns Stock C 0.3 Part 2 What is the standard deviation of the portfolio returns? 0.04 -0.06 0.08 0.01 0.1 0.09
The table below shows the expected rates of return for three stocks and their weights in some portfolio: State Recession Normal Boom 4+ decimals Submit Portfolio weights Probability 4+ decimals 0.2 0.5 0.3 Submit Stock A 0.5 Part 1 What is the expected portfolio return? 0.01 0.04 0.09 Stock B 0.2 Expected returns Stock C 0.3 Part 2 What is the standard deviation of the portfolio returns? 0.04 -0.06 0.08 0.01 0.1 0.09
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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![Intro
The table below shows the expected rates of return for
three stocks and their weights in some portfolio:
State
Recession
Normal
Boom
4+ decimals
Submit
Portfolio
weights
Probability
4+ decimals
0.2
0.5
0.3
Submit
Stock
A
0.5
Part 1
What is the expected portfolio return?
0.01
0.04
0.09
Stock B
0.2
Expected
returns
Stock
C
0.3
Part 2
What is the standard deviation of the portfolio returns?
0.04
-0.06
0.08 0.01
0.1
0.09](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75fb4f79-5bfb-4902-85d2-e1edc76b1d17%2F12c6aa05-c0ac-4e1f-8d7b-ecc801afc402%2Fd0g9hfk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Intro
The table below shows the expected rates of return for
three stocks and their weights in some portfolio:
State
Recession
Normal
Boom
4+ decimals
Submit
Portfolio
weights
Probability
4+ decimals
0.2
0.5
0.3
Submit
Stock
A
0.5
Part 1
What is the expected portfolio return?
0.01
0.04
0.09
Stock B
0.2
Expected
returns
Stock
C
0.3
Part 2
What is the standard deviation of the portfolio returns?
0.04
-0.06
0.08 0.01
0.1
0.09
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