Expected Return and Variance

Nov 19th, 2015
DreamIt
Category:
Business & Finance
Price: $5 USD

Question description

Rate of Return If State Occurs
 State ofProbability of
 EconomyState of EconomyStock AStock BStock C
 Boom.60.15.23.42
 Bust.40.18.08−.09
a.

What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

 Expected return %  
b.

What is the variance of a portfolio invested 24 percent each in A and B and 52 percent in C?(Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.)

 Variance


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