states econ, probability, Asset J, AssetK, Asset L boom. 0.29. 0.055. 0.190

states econ, probability, Asset J,   AssetK,    Asset L
boom.               0.29.         0.055.    0.190.       0.280
growth.             0.36.         0 055.    0.100.       0.190
Stagnant.         0.22.         0.055.    0 040.       0.050
Recession.      0.13.         0.055.    -0.080.      -0.180

A) what is the expected return of each asset?

B) what is the variance and the standard deviation of each asset?

C) what is the expected return of a portfolio with 9% in asset K, and 43% in asset L?

D) what is the portfolio's variance and standard deviation using the same asset weights from part (c)?

hint: make sure to round all intermediate calculations to at least seven decimal places. the input instructions, phases in parenthesis after each answer box, only apply for the answers you will type.

Expert Solution

jeff jeffy answered 1 year ago

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states econ, probability, Asset J, AssetK, Asset L boom. 0.29. 0.055. 0.190

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