Question
In: Finance
There are only two possible states of the economy. State 1 has a 65% chance of...
There are only two possible states of the economy. State 1 has a 65% chance of occurring. In State 1, Asset A returns 6.75% and Asset B returns 9.75%. In State 2, Asset A returns -3.70% and Asset B returns -6.70%. A portfolio of just these two assets is invested 45% in Asset A (with Asset B comprising the remainder without any negative weights). What is the standard deviation of the portfolio's returns?
Question 6 options:
|
5.90% |
|
|
6.07% |
|
|
6.23% |
|
|
6.39% |
|
|
6.56% |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
There are only two possible states of the economy. State 1 has a 65% chance of...
There are only two possible states of the economy. State 1 has a
65% chance of occurring. In State 1, Asset A returns 6.75% and
Asset B returns 9.75%. In State 2, Asset A returns -3.70% and Asset
B returns -6.70%. A portfolio of just these two assets is invested
45% in Asset A (with Asset B comprising the remainder without any
negative weights). What is the standard deviation of the
portfolio's returns?
There are only two possible states of the economy. State 1 has a 57% chance of...
There are only two possible states of the economy. State 1 has a
57% chance of occurring. In State 1, Asset A returns 7.75% and
Asset B returns 10.75%. In State 2, Asset A returns -4.10% and
Asset B returns -7.10%. A portfolio of just these two assets is
invested 53% in Asset A (with Asset B comprising the remainder
without any negative weights). What is the standard deviation of
the portfolio's returns?
There are only two possible states of the economy. State 1 has a 43% chance of...
There are only two possible states of the economy. State 1 has a
43% chance of occurring. In State 1, Asset A returns 9.50% and
Asset B returns 12.50%. In State 2, Asset A returns -4.80% and
Asset B returns -7.80%. A portfolio of just these two assets is
invested 67% in Asset A (with Asset B comprising the remainder
without any negative weights). What is the standard deviation of
the portfolio's returns?
options: 7.66%
7.86%
8.06%
8.26%
8.46%
There are only two possible states of the economy. State 1 has a 67% chance of...
There are only two possible states of the economy. State 1 has a
67% chance of occurring. In State 1, Asset A returns 6.50% and
Asset B returns 9.50%. In State 2, Asset A returns -3.60% and Asset
B returns -6.60%. A portfolio of just these two assets is invested
43% in Asset A (with Asset B comprising the remainder w/o any
negative weights). What is the standard deviation of the
portfolio's returns?
There are only two possible states of the economy. State 1 has a 73% chance of...
There are only two possible states of the economy. State 1 has a
73% chance of occurring. In State 1, Asset A returns 5.75% and
Asset B returns 8.75%. In State 2, Asset A returns -3.30% and Asset
B returns -6.30%. A portfolio of just these two assets is invested
37% in Asset A (with Asset B comprising the remainder without any
negative weights). What is the standard deviation of the
portfolio's returns?
Question 5 options:
5.27%
5.41%
5.55%
5.70%...
There are only two possible states of the economy. State 1 has a 63% chance of...
There are only two possible states of the economy. State 1 has a
63% chance of occurring. In State 1, Asset A returns 7.00% and
Asset B returns 10.00%. In State 2, Asset A returns -3.80% and
Asset B returns -6.80%. A portfolio of just these two assets is
invested 47% in Asset A (with Asset B comprising the remainder
without any negative weights). What is the standard deviation of
the portfolio's returns?
6.75%
6.92%
7.09%
7.26%
7.42%
There are only two possible states of the economy. State 1 has a 49% chance of...
There are only two possible states of the economy. State 1 has a
49% chance of occurring. In State 1, Asset A returns 8.75% and
Asset B returns 11.75%. In State 2, Asset A returns -4.50% and
Asset B returns -7.50%. A portfolio of just these two assets is
invested 61% in Asset A (with Asset B comprising the remainder
without any negative weights). What is the standard deviation of
the portfolio's returns?
a) 7.01%
b) 7.21%
c) 7.40%
d)...
There are only two possible states of the economy. State 1 has a 71% chance of...
There are only two possible states of the economy. State 1 has a
71% chance of occurring. In State 1, Asset A returns 6.00% and
Asset B returns 9.00%. In State 2, Asset A returns -3.40% and Asset
B returns -6.40%. A portfolio of just these two assets is invested
39% in Asset A (with Asset B comprising the remainder without any
negative weights). What is the standard deviation of the
portfolio's returns?
There are only two possible states of the economy. State 1 has a 69% chance of...
There are only two possible states of the economy. State 1 has a
69% chance of occurring. In State 1, Asset A returns 6.25% and
Asset B returns 9.25%. In State 2, Asset A returns -3.50% and Asset
B returns -6.50%. A portfolio of just these two assets is invested
41% in Asset A (with Asset B comprising the remainder without any
negative weights). What is the standard deviation of the
portfolio's returns?
There are only two possible states of the economy. State 1 has a 49% chance of...
There are only two possible states of the economy. State 1 has a
49% chance of occurring. In State 1, Asset A returns 8.75% and
Asset B returns 11.75%. In State 2, Asset A returns -4.50% and
Asset B returns -7.50%. A portfolio of just these two assets is
invested 61% in Asset A (with Asset B comprising the remainder
without any negative weights). What is the standard deviation of
the portfolio's
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