Question
In: Finance
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X...
You have been assigned to examine the following funds with their respective probabilities:
|
Stock Fund X |
Stock Fund Y |
||
|
Scenario |
Probability |
Rate of Return (%) |
Rate of Return (%) |
|
Severe recession |
0.05 |
-5 |
11.2 |
|
Mild recession |
0.15 |
-1.6 |
3.3 |
|
Normal growth |
0.55 |
7.7 |
0.5 |
|
Boom |
0.25 |
16.3 |
-4.1 |
What is the standard deviation of the stock fund X?
Remember to state your answer as a percentage. For example, 99.99%.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X...
You have been assigned to examine the following funds with their
respective probabilities:
Stock Fund X
Stock Fund Y
Scenario
Probability
Rate of Return (%)
Rate of Return (%)
Severe recession
0.05
-5
11.2
Mild recession
0.15
-1.6
3.3
Normal growth
0.55
7.7
0.5
Boom
0.25
16.3
-4.1
Calculate the standard deviation of a portfolio that invests 55%
on stock fund X and 45% on stock fund Y.
Remember to state your answer as a percentage. For example,
99.99%.
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X...
You have been assigned to examine the following funds with their
respective probabilities:
Stock Fund X
Stock Fund Y
Scenario
Probability
Rate of Return (%)
Rate of Return (%)
Severe recession
0.05
-5
11.2
Mild recession
0.15
-1.6
3.3
Normal growth
0.55
7.7
0.5
Boom
0.25
16.3
-4.1
Calculate the expected return of a portfolio that invests 55% on
stock fund X and 45% on stock fund Y.
Remember to state your answer as a percentage. For example,
99.99%.
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a. Should you be long or short in the Midcap
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Long
Short
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