Question
In: Finance
1 pts Consider the following information on Stocks A, B, C and their returns (in decimals)...
1 pts Consider the following information on Stocks A, B, C and their returns (in decimals) in each state: State Prob. of State A B C Boom 20% 0.34 0.22 0.14 Good 45% 0.15 0.12 0.09 Poor 25% 0.01 0.02 0.02 Bust 10% -0.09 -0.02 -0.01 If your portfolio is invested 25% in A, 40% in B, and 35% in C, what is the standard deviation of the portfolio in percent? Answer to two decimals, carry intermediate calcs. to at least four decimals.
Solutions
jeff jeffy answered 10 months agoRelated Solutions
Consider the following information on Stocks A, B, C and their returns (in decimals) in each...
Consider the following information on Stocks A, B, C and their
returns (in decimals) in each state: State Prob. of State A B C
Boom 20% 0.33 0.2 0.14 Good 45% 0.13 0.12 0.07 Poor 25% 0.02 0.01
0.03 Bust 10% -0.09 -0.04 -0.02 If your portfolio is invested 25%
in A, 40% in B, and 35% in C, what is the standard deviation of the
portfolio in percent? Answer to two decimals, carry intermediate
calcs. to at least four...
Consider the following information on Stocks A, B, C and their returns (in decimals) in each...
Consider the following information on Stocks A, B, C and their
returns (in decimals) in each state: State Prob. of State A B C
Boom 20% 0.34 0.2 0.14 Good 45% 0.13 0.09 0.08 Poor 25% 0.01 0.01
0.04 Bust 10% -0.08 -0.03 -0.03 If your portfolio is invested 25%
in A, 40% in B, and 35% in C, what is the standard deviation of the
portfolio in percent? Answer to two decimals, carry intermediate
calcs. to at least four...
Consider the following information on Stocks A, B, C and their returns (in decimals) in each...
Consider the following information on Stocks A, B, C and their
returns (in decimals) in each state: State Prob. of State A B C
Boom 20% 0.32 0.19 0.18 Good 45% 0.16 0.1 0.09 Poor 25% 0.02 0.01
0.03 Bust 10% -0.09 -0.06 -0.02 If your portfolio is invested 25%
in A, 40% in B, and 35% in C, what is the standard deviation of the
portfolio in percent? Answer to two decimals, carry intermediate
calcs. to at least four...
Consider the following information for three stocks, Stocks A, B, and C. The returns on the...
Consider the following information for three stocks, Stocks A,
B, and C. The returns on the three stocks are positively
correlated, but they are not perfectly correlated. (That is, each
of the correlation coefficients is between 0 and 1.)
Stock
Expected Return
Standard Deviation
Beta
A
7.94
16
0.7
B
9.62
16
1.1
C
11.72
16
1.6
Fund P has one-third of its funds invested in each of the three
stocks. The risk-free rate is 5%, and the market is...
Consider the following information for Stocks A, B, and C. The returns on the three stocks...
Consider the following information for Stocks A, B, and C. The
returns on the three stocks are positively correlated, but they are
not perfectly correlated. (that is, each of the correlation
coefficients is between 0 and 1).
Stock Expected Return Standard Deviation Beta
A 9.55% 15.00% 0.9
B 10.45% 15.00% 1.1
C 12.70% 15.00% 1.6
Fund P has one-third of its funds invested in each of the
three stocks. The risk-free rate is 5.5%, and the market is in
equilibrium....
Consider the following information for stocks A, B, and C. The returns on the three stocks...
Consider the following information for stocks A, B, and C. The
returns on the three stocks are positively correlated, but they are
not perfectly correlated. (That is, each of the correlation
coefficients is between 0 and 1.)
Stock
Expected Return
Standard Deviation
Beta
A
9.35%
15%
0.7
B
12.65
15
1.3
C
14.85
15
1.7
Fund P has one-third of its funds invested in each of the three
stocks. The risk-free rate is 5.5%, and the market is in
equilibrium....
Consider the following information for stocks A, B, and C. The returns on the three stocks...
Consider the following information for stocks A, B, and C. The
returns on the three stocks are positively correlated, but they are
not perfectly correlated. (That is, each of the correlation
coefficients is between 0 and 1.)
Stock
Expected Return
Standard Deviation
Beta
A
8.65%
16%
0.7
B
10.45
16
1.1
C
12.25
16
1.5
Fund P has one-third of its funds invested in each of the three
stocks. The risk-free rate is 5.5%, and the market is in
equilibrium....
Consider the following information for stocks A, B, and C. The returns on the three stocks...
Consider the following information for stocks A, B, and C. The
returns on the three stocks are positively correlated, but they are
not perfectly correlated. (That is, each of the correlation
coefficients is between 0 and 1.)
Stock
Expected Return
Standard Deviation
Beta
A
8.75%
14%
0.9
B
9.75
14
1.3
C
10.75
14
1.7
Fund P has one-third of its funds invested in each of the three
stocks. The risk-free rate is 6.5%, and the market is in
equilibrium....
Consider the following information for three stocks, Stocks A, B, and C. The returns on the...
Consider the following information for three stocks, Stocks A,
B, and C. The returns on the three stocks are positively
correlated, but they are not perfectly correlated. (That is, each
of the correlation coefficients is between 0 and 1.)
Stock
Expected Return
Standard Deviation
Beta
A
9.34
%
14
%
0.8
B
11.26
14
1.2
C
13.18
14
1.6
Fund P has one-third of its funds invested in each of the three
stocks. The risk-free rate is 5.5%, and the...
Consider the following information for stocks A, B, and C. The returns on the three stocks...
Consider the following
information for stocks A, B, and C. The returns on the three stocks
are positively correlated, but they are not perfectly correlated.
(That is, each of the correlation coefficients is between 0 and
1.)
Stock
Expected
Return
Standard
Deviation
Beta
A
9.69%
14%
0.9
B
10.92
14
1.2
C
12.56
14
1.6
Fund P has one-third
of its funds invested in each of the three stocks. The risk-free
rate is 6%, and the market is in equilibrium....
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