QUESTION
QUESTION 1An analyst estimates that a stock has the following return probabilities and returns depending on the state of the economy. Calculate the percentage expected rate of returns.Stae of EconomyProb.ReturnGood0.219%Normal0.313Poor?71 points QUESTION 2Use the following table of states of the economy and stock returns to calculate the percentage standard deviation for Bradley.Security Returnsif State OccursProb of State of EconomyRotenBradleyBust0.6-10%24.9%Boom?406.52 points QUESTION 3Use the following table of states of the economy and stock returns to calculate the expected return on a portfolio of 56 percent Roten and the rest in Bradley.Securityif StateReturnsOccursProb of State of EconomyRotenBradleyBust0.5-12%25%Boom?47141 points QUESTION 4Use the following table of states of the economy and stock returns to calculate the percentage standard deviation of a portfolio of a portfolio of 12 percent Roten and the rest in Bradley.Securityif StateReturnsOccursProb of State of EconomyRotenBradleyBust0.3-17%29%Boom?35133 points QUESTION 5Use the following information to calculate the percentage expected return a portfolio that is 42.7 percent invested in 3 Doors, Inc., and the rest invested in Down Co.:3 Dorrs, Inc.Down Co.Expected return16%13%Standard deviation448Correlation21 points QUESTION 6Use the following information to calculate the percentage standard deviation of a portfolio that is 75.2 percent invested in 3 Doors, Inc., and the rest invested in Down Co.:3 Dorrs, Inc.Down Co.Expected return21%14%Standard deviation5841Correlation0.53
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