Extended-- What is the portfolio's variance using the same asset weights from part C? What...
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Extended--
What is the portfolio's variance using the same asset weights from part C?
What is the portfolio's standard using the same asset weights from part C?
Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What are the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with equal investment in all three assets? d. What is the portfolio's variance and standard deviation using the same asset weights in part (c)? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a. What is the expected return of asset R? (Round to four decimal places.) What is the expected return of asset S? (Round to four decimal places.) What is the expected return of asset T? A Data Table - X Round to four decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) b. What is the variance of asset R? (Round to four decimal places. Probability Return on Asset Rin Return on Asset Tin What is the variance of asset S? State State State State of Economy Boom Growth Stagnant Recession 0.28 0.38 0.025 0.025 025 0.0251 Return on Asset Sin State 0.280 0.140 0.170 -0.030 0.480 0.280 .040 -0.160 0 (Round to four decimal places.) What is the variance of asset T? (Round to four decimal places.) What is the standard deviation of asset R? (Round to four decimal places.) Print Done What is the standard deviation of asset S? (Round to four decimal places.) What is the standard deviation of asset T? U (Round to four decimal places.) c. What is the expected return of a portfolio with equal investment in all three assets? (Round to four decimal places.)
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