Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. use the following table of states of the economy a

Use the following table of states of the economy and stock returns to calculate the percentage...

70.2K

Verified Solution

Question

Finance

Use the following table of states of the economy and stockreturns to calculate the percentage standard deviation of aportfolio of a portfolio of 40 percent Roll and the rest inRoss.

Security

if State

Returns

Occurs

Prob of State of EconomyRollRoss
Bust0.1-17%27%
Boom?399

Answer & Explanation Solved by verified expert
3.8 Ratings (482 Votes)
Solution Standard deviation of the portfolio 348 Working Notes Notes Since there is only two state of economy and probability of one state is given 010 for BUST then For Probability of BOOM 1 probability of bust 1 010 090 as total probability is 1 Hence Prob of State of Economy    See Answer
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A random sample of 90 observations produced a mean of 32.4 from a population with a...

Statistics
Q

A small metal sphere, A, carrying a charge of +15.0μC is at the origin. An identical...

Physics
Q

Are the polygons are always sometimes or never similar Two equilateral triangles O always O...

Geometry
Q

3 Find a homogeneous linear system with two equations that are not multiples of one...

Basic Math
Q

A 5 m stepladder propped against a classroom wall forms an angle of 30 with...

Basic Math
Q

Let an = 2 + (-3) (n ? 1)Find a10.

Basic Math
Q

Solve sin (t)t=-7 cos(t) for all solutions 0 ? t < 2?Give your answers accurate...

Calculus
Q

5 Find where f x 0 Give your answer in interval notation O 2 infinity...

Calculus
Q

Which of the following qualitative characteristics Is Important for Information to be useful?: * ...

Accounting
Q

If 18,000 units were in beginning inventory, 27,000 units were started, and 9,000 units were...

Accounting
Q

Accounting
Q

Which of the following is not reported in the schedule of funding progress for a...

Accounting