You decide to invest in a portfolio consisting of 13 percent Stock X, 52 percent Stock...

You decide to invest in a portfolio consisting of 13 percent Stock X, 52 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio?

State of Economy	Probability of State		Return if State Occurs
	of Economy		Return if State Occurs
	of Economy		Stock X		Stock Y		Stock Z
Normal		.75		10.60%		4.00%		13.00%
Boom		.25		17.90%		25.90%		17.40%

Multiple Choice

8.76%
3.61%
7.51%
6.01%
2.71%

Expert Solution

jeff jeffy answered 2 years ago

You decide to invest in a portfolio consisting of 17 percent Stock X, 50 percent Stock...

You decide to invest in a portfolio consisting of 17 percent Stock X, 50 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock X Stock Y Stock Z Normal .76 10.40% 3.80% 12.80% Boom .24 17.70% 25.70% 17.20% Multiple Choice 8.50% 3.40% 2.55% 7.28% 5.83%

You decide to invest in a portfolio consisting of 17 percent Stock X, 38 percent Stock...

You decide to invest in a portfolio consisting of 17 percent Stock X, 38 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock X Stock Y Stock Z Normal .75 9.20% 2.60% 11.60% Boom .25 16.50% 24.50% 16.00%

You decide to invest in a portfolio consisting of 15 percent Stock X, 51 percent Stock...

You decide to invest in a portfolio consisting of 15 percent Stock X, 51 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock X Stock Y Stock Z Normal .77 10.50% 3.90% 12.90% Boom .23 17.80% 25.80% 17.30% 2.51% 8.44% 7.24% 3.35% 5.79%

You decide to invest in a portfolio consisting of 19 percent Stock X, 47 percent Stock...

You decide to invest in a portfolio consisting of 19 percent Stock X, 47 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock X Stock Y Stock Z Normal .80 11.10% 4.50% 13.50% Boom .20 18.40% 26.40% 17.90% A. 5.27% B. 6.59% C. 7.69% D. 2.78% E. 2.08%

You decide to invest in a portfolio consisting of 23 percent Stock X, 44 percent Stock...

You decide to invest in a portfolio consisting of 23 percent Stock X, 44 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock X Stock Y Stock Z Normal .82 11.30% 4.70% 13.70% Boom .18 18.60% 26.60% 18.10% Multiple Choice 1.80% 4.90% 6.13% 2.41% 7.15%

You decide to invest in a portfolio consisting of 19 percent Stock X, 40 percent Stock...

You decide to invest in a portfolio consisting of 19 percent Stock X, 40 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock X Stock Y Stock Z Normal .78 9.40% 2.80% 11.80% Boom .22 16.70% 24.70% 16.20% 7.22% 6.19% 2.45% 1.84% 4.95%

You decide to invest in a portfolio consisting of 11 percent Stock X, 53 percent Stock...

You decide to invest in a portfolio consisting of 11 percent Stock X, 53 percent Stock Y, and the remainder in Stock Z. Based on the following information, what is the standard deviation of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock X Stock Y Stock Z Normal .76 10.70% 4.10% 13.10% Boom .24 18.00% 26.00% 17.50%

You decide to invest in a portfolio consisting of 32 percent Stock A, 46 percent Stock...

You decide to invest in a portfolio consisting of 32 percent Stock A, 46 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock A Stock B Stock C Recession .113 − 10.00% − 3.40% − 12.40% Normal .663 9.30% 10.64% 16.80% Boom .224 21.53% 25.07% 29.77% rev: 04_25_2019_QC_CS-167128 Multiple Choice .01088 .00846 .00806 .00910 .00749

You decide to invest in a portfolio consisting of 25 percent Stock A, 25 percent Stock...

You decide to invest in a portfolio consisting of 25 percent Stock A, 25 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock A Stock B Stock C Recession .21 - 18.0 % - 3.5 % - 22.4 % Normal .49 11.0 % 8.1 % 16.7 % Boom .30 27.8 % 15.4 % 31.3...

You decide to invest in a portfolio consisting of 30 percent Stock A, 47 percent Stock...

You decide to invest in a portfolio consisting of 30 percent Stock A, 47 percent Stock B, and the remainder in Stock C. Based on the following information, what is the variance of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock A Stock B Stock C Recession .114 − 10.10% − 3.50% − 12.50% Normal .665 9.40% 10.66% 16.90% Boom .221 21.55% 25.11% 29.81%

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