The returns of 3 securities (stock A, stock b, and a corporate bond) are listed...
90.2K
Verified Solution
Link Copied!
Question
Finance
The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below.
State
Probability
stock A
stock B
Corp bond
Boom
30%
12%
4%
9%
Normal
40%
5%
2%
8%
Bust
30%
2%
-10%
6%
Question 13 options:
(Estimated time allowance: 25 minutes). The returns of 3 securities (stock A, stock b, and a corporate bond) are listed below.
State
Probability
stock A
stock B
Corp bond
Boom
30%
12%
4%
9%
Normal
40%
5%
2%
8%
Bust
30%
2%
-10%
6%
You MUST use 4 digits in every calculation you do in order for your answer to be the same as the one in the system. When entering your answer, round to the nearest 0.01% but do not use or enter the sign %
What is the expected return of a portfolio that is 30% in stock A, 60% in stock B and the rest in the corporate bond?
What is the standard deviation of the portfolio that is 30% in stock A, 60% in stock B and the rest in the corporate bond?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
