•Use the following information on states of the economy and stock returns

QUESTION

.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Round your answer to 2 decimal places. Omit the “%” sign in your response.).9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>State of EconomyProbability ofState of EconomySecurity ReturnIf State OccursRecession.30-9%Normal.5015Boom.2024.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Standard deviation%.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>2.Security Returns If State OccursState ofProbability ofEconomyState of EconomyRollRossBust.30-16%20%Boom.70277.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as decimals): (Negative amounts should be indicated by a minus sign. Round your Economy and Standard deviation answers to 2 decimal and other answers to 4 decimal places. Omit the “%” sign in your response.).9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>State ofEconomyProbability ofState of EconomyReturn Deviationfrom Expected ReturnSquared ReturnDeviationProductRollBustBoom?2=RossBustBoom?2=.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Standard deviationsRoll%Ross%3.Security Returns If State OccursState ofProbability ofEconomyState of EconomyRollRossBust.30-16%20%Boom.70277.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as decimals): (Negative amounts should be indicated by a minus sign. Round your Economy and Standard deviation answers to 2 decimal and other answers to 4 decimal places. Omit the “%” sign in your response.).9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>State ofEconomyProbability ofState of EconomyReturn Deviationfrom Expected ReturnSquared ReturnDeviationProductRollBustBoom?2=RossBustBoom?2=.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>4.Standard deviationsRoll%Ross%Security Returns If State OccursState ofProbability ofEconomyState of EconomyRollRossBust.30-18%19%Boom.70297.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Calculate the expected return on a portfolio of 65 percent Roll and 35 percent Ross by filling in the following table: (Round your answers to 4 decimal places. Negative answers should be indicated by a minus sign. Omit the “%” sign in your response.).9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>State ofEconomyProbability ofState of EconomyPortfolio ReturnIf State OccursProductBust.30Boom.70E(RP) =%5. Consider the following information:.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Rate of Return If State OccursState ofProbability ofEconomyState of EconomyStock AStock BStock CBoom.20.20.33.33Good.15.15.25.15Poor.20.05-.06-.07Bust.45-.06-.26-.09.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>a.Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. Omit the “%” sign in your response.).9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Expected return%.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>b-1.What is the variance of this portfolio? (Round your answer to 5 decimal places.).9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Variance of this portfolio.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>b-2.The standard deviation? (Round your answer to 2 decimal places. Omit the “%” sign in your response.).9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Standard deviation%.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>6. Refer to the table below..9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>3 Doors, Inc.Down Co.Expected return, E (R)19%7.5%Standard deviation, ?3422Correlation.43.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Using the information provided on the two stocks in the table above, find the expected return and standard deviation on the minimum variance portfolio. (Round your answer to 2 decimal places. Omit the “%” sign in your response.).9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Expected return%Standard deviation%

ANSWER:

REQUEST HELP FROM A TUTOR