Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A Stock B Stock C Boom .15 .40 .50 .30 Good .60 16 10 .09 Poor .20 -.02 -.05...


Consider the following information:<br>Rate of Return If State Occurs<br>State of<br>Probability of<br>State of<br>Economy<br>Economy<br>Stock A<br>Stock B<br>Stock C<br>Boom<br>.15<br>.40<br>.50<br>.30<br>Good<br>.60<br>16<br>10<br>.09<br>Poor<br>.20<br>-.02<br>-.05<br>-.03<br>Bust<br>.05<br>-18<br>-.25<br>-11<br>Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is<br>the expected return of the portfolio? (Do not round intermediate calculations and<br>enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)<br>b-1. What is the variance of this portfolio? (Do not round intermediate calculations and<br>round your answer to 5 decimal places, e.g., 16161.)<br>b-2. What is the standard deviation? (Do not round intermediate calculations and enter<br>your answer as a percent rounded to 2 decimal places, e.g., 32.16.)<br>a.<br>%<br>a.<br>Expected return<br>b-1. Variance<br>b-2. Standard deviation<br>10 of 15<br>Next ><br>Prev<br>9,779<br>28<br>MacBook Air<br>

Extracted text: Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A Stock B Stock C Boom .15 .40 .50 .30 Good .60 16 10 .09 Poor .20 -.02 -.05 -.03 Bust .05 -18 -.25 -11 Your portfolio is invested 25 percent each in A and C, and 50 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. % a. Expected return b-1. Variance b-2. Standard deviation 10 of 15 Next > Prev 9,779 28 MacBook Air

Jun 05, 2022
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