Expected return on an equally weighted portfolio

Assignment Help Other Subject
Reference no: EM132005587

Consider the following:

Rate of Return if State Occurs

State of the Econ. Probability of State of Econ. Stock A Stock B Stock C

Boom .56 .13 .21 .39

Bust .44 .15 .05 -.06

A. What is the expected return on an equally weighted portfolio of these three stocks?

Expected return 15.27%?

B. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?

Variance 11.45?

Reference no: EM132005587

Questions Cloud

Spot-futures parity with continuously compounded interest : Assume that interest is continuously compounded (i.e., use the spot-futures parity with continuously compounded interest).
Produce a report that synthesises the information : 307MKT - GLOBAL MARKETING - Produce a report that synthesises the information collected through secondary research and critically evaluate these markets
Calculate the ytm of apple : Calculate the YTM of Apple and calculate the average current yield for Apple. Can anyone help me get started with this question?
Much must you invest at the end : How much must you invest at the end of each of the next 20 years in order to meet your financial objectives
Expected return on an equally weighted portfolio : A. What is the expected return on an equally weighted portfolio of these three stocks?
Name the 5 states with the largest reserves of oil in usa : Where are the metallic mineral areas of USA, and where are the fuel deposits in USA. Name the 5 states with the largest reserves of oil in USA.
What pieces of evidence did wegener use to reconstruct : 1. What pieces of evidence did Wegener use to reconstruct Pangaea and support his theory of continental drift?
Developing Pentagon and Hexagon Deployment Scheme : MATLAB Programming Assignment - Need help for developing Pentagon and Hexagon Deployment Scheme
What is meant by an integrated talent management strategy : Explain the meaning of what a Hi Potential employee is within the succession planning process. What is meant by an Integrated Talent Management Strategy

Reviews

Write a Review

Other Subject Questions & Answers

  Would you consider woodside a people-oriented or a

read the case study and answer the following three questions.1. what traits does woodside possess that might be

  Which one most seriously weakens the argument

Which one of the following, if true, most seriously weakens the argument? The speakers above appear to disagree on which one of the following points?

  Origins of homosexuality is an important goal

How persuasive is the idea that identifying the origins of homosexuality is an important goal? In what way is it important to have this knowledge?

  Analyze the key elements of the case

Go to the Federal Trade Commission Website located at http://www.ftc.gov/. Search for Deceptive Advertising. At Results, scroll down to Filter by Content Type and choose Case. Then Filter by Date and select this year or last year. Select a recent ..

  Challenges of meeting the needs of diverse population

Assume that you work with culturally diverse clients in a community agency. Given the challenges of meeting the needs of this diverse population:

  Compute residuals and draw histogram of these residuals

Make the scatter diagram with sales on the vertical axis and advertising on the horizontal axis. What do you expect to find if you would fit a regression line to these data?

  Explain disadvantages of using traditional predictors

Determine three (3) advantages and three (3) disadvantages of using traditional predictors (e.g., resume-bio presentations, interviews, reference checks, etc.)

  Write and implement a marketing plan

A marketing plan's elements may vary based on the organization and its industry, but readers still expect to see certain common elements.

  Analyze and select two types of economic evaluations

Analyze and select two types of economic evaluations. Compare the two evaluations, in relation to the factors that may affect the decision to conduct.

  Role of federal-state governments

Does the Federal government have to do more to simplify and limit liability for state and local governments and industry for certain disasters?

  Write a paper on criminal justice system

write a 2 page paper on how the impact at each level of our criminal justice system affects the population they serve, reform within our criminal justice, and the impact on our society/citizens.

  Dedication and commitment to the cause

How would you increase their dedication and commitment to this cause? How would you inspire them to continue to be involved in projects such as these?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd