What is the variance of this portfolio

Assignment Help Finance Basics

Reference no: EM13290663

Consider the following information:

Rate of Return if State Occurs
State of Economy Probability of
State of Economy Stock A Stock B Stock C
Boom .20 .35 .33 .25
Good .30 .16 .08 .13
Poor .09 .06 -.01 .05
Bust .41 -.01 -.11 -11.95

Requirement 1:

Your portfolio is invested 24 percent each in A and C, and 52 percent in B. What is the expected return of the portfolio? (Do not round your intermediate calculations.)

Requirement 2:
(a) What is the variance of this portfolio? (Do not round your intermediate calculations.)

(b) What is the standard deviation? (Do not round your intermediate calculations.)

Reference no: EM13290663

Questions Cloud

Design circuit to diplay the decimal equivalent of bcd-value : design a circuit to diplay the decimal equivalent of a 4-bit BCD value, input via swiches on the logic designer,on a seven segment display. use 7448 BCD to sevn segment decoder to do this. show the 7448 as a single functional unit.

Compute the maximum potential difference between the disks : Two 5.5 5.5 metal plates are separated by a 0.21--thick piece of Teflon. compute the maximum potential difference between the disks

Express the reactances and the impedance in percent : Aportion of a power system consists of two generators operating inparallel, connected to a step-up transformer that links them with a230 kV transmission line. The ratings of these components are; Generator G1:10MVA, 12 % reactance

Which starts and stops counting on successive pulses : Suppose one is given a modulo-2N counter that consists of N "T" flip-flops running on a 1.0 Hz clock source. Using an external input line, convert the counter into a stop watch, which starts and stops counting on successive pulses on the external ..

What is the variance of this portfolio : What is the variance of this portfolio? (Do not round your intermediate calculations.)

Obtain the direction of the trains motion relative to north : A train moving with constant velocity travels 180north in 12 and an undetermined distance to the west. The speed of the train is 36 M/S^2. Find the direction of the train's motion relative to north

What is the break-even level of earnings before interest : What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes. (Please note that because of rounding you will not get the exact answer).

Determine the voltage magnitude and current magnitude at t : At t = 5s, the energy stored in a 2-H inductor is 200J and is increasing at 100J/s. Determine the voltage magnitude and current magnitude at t = 5s. Does the current enter or leave the positive terminal of the inductor

Find the electricfield vector in polar coordinates at origin : A 3 microcoulomb charge is at the coordinated (3,4)mm. A -4 microcoulomb charge is at the coordinates (-2,5)mm. find the Electric field vector in polar coordinates at the origin

User Account

All Pages