What is standard deviation and variance of this portfolio

Assignment Help Financial Management

Reference no: EM131552401

Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .25 .20 .48 .23 Good .15 .14 .20 .11 Poor .20 –.05 –.13 .00 Bust .40 –.13 –.33 –.11 a. Your portfolio is invested 40 percent each in A and C, and 20 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Expected return 1.40 % b-1. What is the variance of this portfolio? (Do not round intermediate calculations. Round your answer to 5 decimal places.) Variance of this portfolio b-2. What is the standard deviation? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation %

Reference no: EM131552401

Questions Cloud

What is auto completion : How many different types of auto completion are there? Explain briefly what each type of auto completion does.

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

Find the absolute maximum and values of ƒ on the set d. : Find the absolute maximum and values of ƒ on the set D.

What is the firms optimal capital budget : What is the firm's optimal capital budget in this case? What is the firm's optimal capital budget? What is the firm's optimal capital budget in this case?

What is standard deviation and variance of this portfolio : What is the variance of this portfolio? What is the standard deviation? What is the expected return of the portfolio?

Use any test to determine whether the series is absolutely : Use any test to determine whether the series is absolutely convergent, conditionally convergent, or divergent.

Find the capacitance of a parallel plate capacitor : Find the capacitance of a parallel plate capacitor if the area of each plate is 0.075 m2 and the distance between the plates is 1.77 mm. The dielectric is air.

Evaluating capital budgeting project : Depreciation methods Charlene is evaluating a capital budgeting project that should last for 4 years. Which depreciation method would produce the higher NPV?

What is the equipment after-tax salvage value : Karsted can sell the used equipment today for $6.75 million, and its tax rate is 30%. What is the equipment's after-tax salvage value?

User Account

All Pages