expected return and standard deviation. stateecon, probability, asset A, asset B, Asset C boom. 0.34. 0.02. &nbs

expected return and standard deviation.

stateecon, probability, asset A, asset B, Asset C
boom.              0.34.       0.02.       0.22.       0.34
normal.            0.52.       0.02.       0.05.       0.18
recession.        0.14.      0.02.       -0.01.     -0.25

A) what is the expected return of each asset?

B) what is the variance of each Asset?

C) what is the standard deviation of each asset?

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer . Cell reference also provided.

Cell reference -

Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.

jeff jeffy answered 11 months ago

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