Corporate Finance Assignment/ Professional Essay Writers
May 8th, 2020
Consider the following information: |
Rate of Return if State Occurs | ||||
State of | Probability of State | |||
Economy | of Economy | Stock A | Stock B | Stock C |
Boom | .67 | .10 | .04 | .25 |
Bust | .33 | .14 | .20 | –.05 |
a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the variance of a portfolio invested 22 percent each in A and B and 56 percent in C? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161. Get Finance Help Today