Calculate the return of the portfolio

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Reference no: EM131179825

We have a portfolio that is invested 70% in Asset A and 30% in Asset B. Assume the following

State of the Econ . Probability Exp.Ret (Asset A) Exp. Ret (Asset B)

Recession 40% -4% 2%

Expansion 60% 16% 6%

Calculate the Return of the portfolio under each of the given states of the economy

State of the Econ. Probability Return of the Portfolio containing 70% in A and 30% in B

Recession 40% _______-2.2% _________%

Expansion 60% _______13% _________%

What is the overall Expected return of the portfolio? Expected Return on the Portfolio = ___________ 6.92% ______________%

What is the standard deviation of the $10,000 portfolio? Standard Deviation of the $10,000 portfolio = _____ 7.446% ___________%

Reference no: EM131179825

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