What is the portfolio variance

Assignment Help Finance Basics
Reference no: EM13291929

A portfolio is expected to return 15 percent in a booming economy, 9 percent in a normal economy, and -3 percent in a recessionary economy. The probability a booming economy is 15 percent while the probability of a recession is 5 percent. What is the portfolio variance?

Reference no: EM13291929

Questions Cloud

Adherents to crime control model oppose plea bargaining : Why do adherents to the crime control model oppose plea bargaining? Why do adherents to the due process model oppose plea bargaining? Discuss the caseload hypothesis and other explanations for plea bargaining.  Explain which theory you believe provid..
Calculate generated emf and regulation of the alternator : A 3-phase,4pole star connected turbo alternater has a cylindrical rotar. The reactance and resistance perphase of winding is 2.5 ohms and 0.15 ohms.The alternater hasterminal potential difference of 6600V when delivering a current of250Amps.
What is the sound level number : The sound level of a single vacuum cleaner is about 75dB and a television is about 55dB. What is the sound level number
What is the reward-to-risk ratio : The U.S. Treasury bill is yielding 5.1 percent while a stock with a beta of 1.08 is yielding 12.3 percent. What is the reward-to-risk ratio?
What is the portfolio variance : A portfolio is expected to return 15 percent in a booming economy, 9 percent in a normal economy, and -3 percent in a recessionary economy. The probability a booming economy is 15 percent while the probability of a recession is 5 percent. What is ..
How to calculate values of delta u and q : An ideal gas is compressed isothermically by a force of 85 newtons acting through .24 meter. Calculate values of delta U and q.
Calculate how many turns are there in the coil : The magnetic field between the poles of an electromagnet is 2.17 T. A coil of wire is placed in this region so that the field is parallel to the axis of the coil. How many turns are there in the coil
Accuracy of a particular weather forecaster : To check the accuracy of a particular weather forecaster, records were checked only for those days when the forecaster predicted rain " with 30% probability". A check of 25 of those days indicated that it rained on 10 of the 25.
How important is the use of foreign currency derivatives : How important is the use of foreign currency derivatives to an MNE? Provide a specific example.

Reviews

Write a Review

Finance Basics Questions & Answers

  Review the key problems

I have just been hired through the new president of Playword Greeting Cards, an established company that sells greeting cards and collectibles to its own line of company-owned and franchise stores.

  What is the arithmetic average return

The return on your portfolio over the last 5 years were -5%, 20%,0%,10%, and 5%. What is the arithmetic average return?

  Describe the term efficient market

Carefully describe what is meant by the term efficient market. Art there different levels of market efficiency discuss those levels?

  Expected annual cost of the current maintenance policy

The fire department has a number of failures with oxygen masks & is  Assessing its  possibility of outsourcing the preventive maintenance to the manufacturer.

  Find percent of the population registered to vote

If during an election there were 6372 listed voters & 3560 listed voters voted, what percentage of the listed voters actually cast a vote.

  What is the price paid to the bondholder

A 4.7 percent corporate coupon bond is callable in ten years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?

  What were bertin total long-term debt in 2010

How much new long-term debt financing will be needed in 2011? (Hint: AFN - New stock = New long-term debt.) Round your answer to the nearest dollar.

  What is the variance of the returns on rtf

The probability of a boom is 63 percent while the probability of a recession is 37 percent. What is the variance of the returns on RTF, Inc. stock?

  What is the 95 percent probability range

A stock has returns of 8 percent, 12 percent, -22 percent, and 18 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year?

  What is the estimated net present value of the project

What is the estimated net present value of the project, after consideration of the potential future opportunity?

  Ratio calculation and analysis

As loan analyst for Utrillo Bank, you have been presented the following data: Each of these corporations has requested a loan of $50,000 for 6 months with no collateral offered.

  Margin required to hold a futures contract

The margin required to hold a futures contract is not a down payment but a form of security bond.  What will be your comments on this?

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