Question

In: Finance

Consider the following information on Stocks A, B, C and their returns (in decimals) in each...

Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom 20% 0.33 0.2 0.14 Good 45% 0.13 0.12 0.07 Poor 25% 0.02 0.01 0.03 Bust 10% -0.09 -0.04 -0.02 If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent? Answer to two decimals, carry intermediate calcs. to at least four decimals.

Solutions

Expert Solution


Related Solutions

Consider the following information on Stocks A, B, C and their returns (in decimals) in each...
Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom 20% 0.34 0.2 0.14 Good 45% 0.13 0.09 0.08 Poor 25% 0.01 0.01 0.04 Bust 10% -0.08 -0.03 -0.03 If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent? Answer to two decimals, carry intermediate calcs. to at least four...
Consider the following information on Stocks A, B, C and their returns (in decimals) in each...
Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom 20% 0.32 0.19 0.18 Good 45% 0.16 0.1 0.09 Poor 25% 0.02 0.01 0.03 Bust 10% -0.09 -0.06 -0.02 If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent? Answer to two decimals, carry intermediate calcs. to at least four...
1 pts Consider the following information on Stocks A, B, C and their returns (in decimals)...
1 pts Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom 20% 0.34 0.22 0.14 Good 45% 0.15 0.12 0.09 Poor 25% 0.01 0.02 0.02 Bust 10% -0.09 -0.02 -0.01 If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent? Answer to two decimals, carry intermediate calcs. to at...
Consider the following information for three stocks, Stocks A, B, and C. The returns on the...
Consider the following information for three stocks, Stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta A 7.94 16 0.7 B 9.62 16 1.1 C 11.72 16 1.6 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is...
Consider the following information for Stocks A, B, and C. The returns on the three stocks...
Consider the following information for Stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (that is, each of the correlation coefficients is between 0 and 1). Stock Expected Return Standard Deviation Beta A 9.55% 15.00% 0.9 B 10.45% 15.00% 1.1 C 12.70% 15.00% 1.6 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5.5%, and the market is in equilibrium....
Consider the following information for stocks A, B, and C. The returns on the three stocks...
Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta A 9.35% 15% 0.7 B 12.65    15    1.3 C 14.85    15    1.7 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5.5%, and the market is in equilibrium....
Consider the following information for stocks A, B, and C. The returns on the three stocks...
Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta A 8.65% 16% 0.7 B 10.45    16    1.1 C 12.25    16    1.5 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5.5%, and the market is in equilibrium....
Consider the following information for stocks A, B, and C. The returns on the three stocks...
Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta A 8.75% 14% 0.9 B 9.75    14    1.3 C 10.75    14    1.7 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 6.5%, and the market is in equilibrium....
Consider the following information for three stocks, Stocks A, B, and C. The returns on the...
Consider the following information for three stocks, Stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta A 9.34 % 14 % 0.8 B 11.26 14 1.2 C 13.18 14 1.6 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5.5%, and the...
Consider the following information for stocks A, B, and C. The returns on the three stocks...
Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.) Stock Expected Return Standard Deviation Beta A 9.69% 14% 0.9 B 10.92    14    1.2 C 12.56    14    1.6 Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 6%, and the market is in equilibrium....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT