Question
In: Finance
You are expecting either a recession or steady growth next year. Recession has a 25% probability...
You are expecting either a recession or steady growth next year. Recession has a 25% probability of happening. In steady growth, stock ABC returns 12.00% and stock XYZ returns 9.00%. In a recession, stock ABC returns -6.20% and stock XYZ returns -4.00%. You are going to put together a portfolio of these two stocks with positive portfolio weight in each and allocate 55% of the portfolio to ABC with the remainder to XYZ. What is the variance of the portfolio?
Question 12 options:
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0.00448 |
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0.00460 |
|
|
0.00472 |
|
|
0.00483 |
|
|
0.00495 |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
You are expecting either a recession or steady growth next year. Recession has a 25% probability...
You are expecting either a recession or steady growth next year.
Recession has a 25% probability of happening. In steady growth,
stock ABC returns 12.00% and stock XYZ returns 9.00%. In a
recession, stock ABC returns -6.20% and stock XYZ returns -4.00%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 55% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?...
You are expecting either a recession or steady growth next year. Recession has a 11% probability...
You are expecting either a recession or steady growth next year.
Recession has a 11% probability of happening. In steady growth,
stock ABC returns 13.75% and stock XYZ returns 10.75%. In a
recession, stock ABC returns -6.90% and stock XYZ returns -4.70%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 69% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?...
You are expecting either a recession or steady growth next year. Recession has a 49% probability...
You are expecting either a recession or steady growth next year.
Recession has a 49% probability of happening. In steady growth,
stock ABC returns 9.00% and stock XYZ returns 6.00%. In a
recession, stock ABC returns -5.00% and stock XYZ returns -2.80%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 31% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?...
You are expecting either a recession or steady growth next year. Recession has a 31% probability...
You are expecting either a recession or steady growth next year.
Recession has a 31% probability of happening. In steady growth,
stock ABC returns 11.25% and stock XYZ returns 8.25%. In a
recession, stock ABC returns -5.90% and stock XYZ returns -3.70%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 49% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?...
You are expecting either a recession or steady growth next year. Recession has a 19% probability...
You are expecting either a recession or steady growth next year.
Recession has a 19% probability of happening. In steady growth,
stock ABC returns 12.75% and stock XYZ returns 9.75%. In a
recession, stock ABC returns -6.50% and stock XYZ returns -4.30%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 61% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?
You are expecting either a recession or steady growth next year. Recession has a 33% probability...
You are expecting either a recession or steady growth next year.
Recession has a 33% probability of happening. In steady growth,
stock ABC returns 11.00% and stock XYZ returns 8.00%. In a
recession, stock ABC returns -5.80% and stock XYZ returns -3.60%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 47% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?...
You are expecting either a recession or steady growth next year. Recession has a 41% probability...
You are expecting either a recession or steady growth next year.
Recession has a 41% probability of happening. In steady growth,
stock ABC returns 10.00% and stock XYZ returns 7.00%. In a
recession, stock ABC returns -5.40% and stock XYZ returns -3.20%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 39% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?...
You are expecting either a recession or steady growth next year. Recession has a 19% probability...
You are expecting either a recession or steady growth next year.
Recession has a 19% probability of happening. In steady growth,
stock ABC returns 12.75% and stock XYZ returns 9.75%. In a
recession, stock ABC returns -6.50% and stock XYZ returns -4.30%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 61% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?
You are expecting either a recession or steady growth next year. Recession has a 29% probability...
You are expecting either a recession or steady growth next year.
Recession has a 29% probability of happening. In steady growth,
stock ABC returns 11.50% and stock XYZ returns 8.50%. In a
recession, stock ABC returns -6.00% and stock XYZ returns -3.80%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 51% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?...
14.You are expecting either a recession or steady growth next year. Recession has a 47% probability...
14.You are expecting either a recession or steady growth next
year. Recession has a 47% probability of happening. In steady
growth, stock ABC returns 9.25% and stock XYZ returns 6.25%. In a
recession, stock ABC returns -5.10% and stock XYZ returns -2.90%.
You are going to put together a portfolio of these two stocks with
positive portfolio weight in each and allocate 33% of the portfolio
to ABC with the remainder to XYZ. What is the variance of the
portfolio?...
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