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Mathematics, 12.12.2019 06:31 jamarlittles9132

Consider the following information on a portfolio of three stocks: state of economy probability of state of economy stock a rate of return stock b rate of return stock c rate of return boom .15 .04 .34 .48 normal .53 .12 .24 .22 bust .32 .18 –.23 –.37 a. if your portfolio is invested 36 percent each in a and b and 28 percent in c, what is the portfolio’s expected return, the variance, and the standard deviation? (do not round intermediate calculations. round your variance answer to 5 decimal places, e. g., 32.16161. enter your other answers as a percent rounded to 2 decimal places, e. g., 32.16.) b. if the expected t-bill rate is 4.35 percent, what is the expected risk premium on the portfolio?

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Consider the following information on a portfolio of three stocks: state of economy probability of...
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