You have the below information about the expected returns of Lembas LLC, Rivendell LCC, and Arda Capital for the coming year, which each heavily depend on the state of the economy: Economic State...


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You have the below information about the expected returns of Lembas LLC, Rivendell LCC, and Arda Capital for the coming year, which each heavily depend on the state of the economy:<br>Economic State<br>Probability<br>Lembas LLC.<br>Rivendell LLC<br>Arda Capital<br>Boom<br>0.18<br>22.00%<br>-19.00%<br>44.00%<br>Normal<br>0.53<br>11.00%<br>6.00%<br>19.00%<br>Recession<br>0.21<br>-2.00%<br>33.00%<br>-8.00%<br>Crisis<br>0.08<br>-6.00%<br>45.00%<br>-21.00%<br>You currently own a portfolio that of which 38.0% of its value consists of shares of Lembas LLC, 35.0% of its value comes from Rivendell LLC, and the remainder comes from Arda Capital.<br>A) What is the expected return of each of the three firms in the coming year?<br>(Round each of your answers to two decimal places)<br>Lembas LLC:<br>%<br>Rivendell LLC:<br>%<br>Arda Capital:<br>%<br>B) What is the expected return on your portfolio?<br>%<br>(Round your answer to two decimal places)<br>C) What is the expected standard deviation of your portfolio's return in the coming year?<br>%<br>(Round your answer to two decimal places)<br>Check<br>

Extracted text: You have the below information about the expected returns of Lembas LLC, Rivendell LCC, and Arda Capital for the coming year, which each heavily depend on the state of the economy: Economic State Probability Lembas LLC. Rivendell LLC Arda Capital Boom 0.18 22.00% -19.00% 44.00% Normal 0.53 11.00% 6.00% 19.00% Recession 0.21 -2.00% 33.00% -8.00% Crisis 0.08 -6.00% 45.00% -21.00% You currently own a portfolio that of which 38.0% of its value consists of shares of Lembas LLC, 35.0% of its value comes from Rivendell LLC, and the remainder comes from Arda Capital. A) What is the expected return of each of the three firms in the coming year? (Round each of your answers to two decimal places) Lembas LLC: % Rivendell LLC: % Arda Capital: % B) What is the expected return on your portfolio? % (Round your answer to two decimal places) C) What is the expected standard deviation of your portfolio's return in the coming year? % (Round your answer to two decimal places) Check

Jun 04, 2022
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