Question

In: Finance

9.There are only two possible states of the economy. State 1 has a 59% chance of...

9.There are only two possible states of the economy. State 1 has a 59% chance of occurring. In State 1, Asset A returns 7.50% and Asset B returns 10.50%. In State 2, Asset A returns -4.00% and Asset B returns -7.00%. A portfolio of just these two assets is invested 51% in Asset A (with Asset B comprising the remainder without any negative weights). What is the standard deviation of the portfolio's returns? options: 6.75% 6.92% 7.10% 7.28% 7.46%

Solutions

Expert Solution

The answer is c) 7.10%

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

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 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 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 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%...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT