Probability State of of State of Economy Economy 0.50 0.50 Bust Boom State of Economy Bust Boom Calculate the expected return on a portfolio of 65 percent Roll and 35 percent Ross by filling in the following table: Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Probability of State of Economy Security Returns if State Occurs 0.50 0.50 Roll -14% 25% Ross 18% 6% Portfolio Return if State Occurs % % E(Rp)= Product % % %

Probability State of of State of Economy Economy 0.50 0.50 Bust Boom State of Economy Bust Boom Calculate the expected return on a portfolio of 65 percent Roll and 35 percent Ross by filling in the following table: Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Probability of State of Economy Security Returns if State Occurs 0.50 0.50 Roll -14% 25% Ross 18% 6% Portfolio Return if State Occurs % % E(Rp)= Product % % %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 26P

See similar textbooks

Similar questions

Probability State of of State of Economy Economy 0.40 0.60 Bust Boom State of Economy Bust Boom Security Returns if State Occurs Calculate the expected return on a portfolio of 55 percent Roll and 45 percent Ross by filling in the following table: Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Roll -17% 28% Probability of State of Economy 0.40 0.60 Ross 18% 7N Answer is complete but not entirely correct. Portfolio Return if State Occurs 0.04% 11.40% E(R) Product 5.50% 5.13 % 10.63 %
Probability State of of state of Economy Bust Boom Economy 0.60 0.40 Security Returns if State Occurs Roll Ross -15% 19% 26% 6% Calculate the expected return on a portfolio of 70 percent Roll and 30 percent Ross by filling in the following table: Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your ans percent rounded to 2 decimal places. State of Economy Probability Portfolio Return if of State of Economy Product State Occurs Bust 0.60 % % Boom 0.40 % % E(Rp)= ge % 13
State of Economy Bust Boom Probability of State of Economy 0.30 0.70 Bust Boom Security Returns if State Occurs Roll -17% 17% State of Probability Portfolio Return if Economy of State of Economy State Occurs 0.30 0.70 Calculate the expected return on a portfolio of 70 percent Roll and 30 percent Ross by filling in the following table: 5 Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers percent rounded to 2 decimal places. % Ross 18% 5% E(Rp)= Product Check my wc % % %
Probability State of of State of Economy Economy Bust 0.60 Boom 0.40 State of Economy Bust Boom Calculate the expected return on a portfolio of 40 percent Roll and 60 percent Ross by filling in the following table: Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Probability of State of Economy Security Returns if State Occurs 0.60 0.40 Roll 9% 20% Portfolio Return if State Occurs % Ross 13% 5% E(Rp)= Product % % %
State of Economy Bust Boom State of Economy Probability of State of Economy Bust Boom Probability of State of Economy 0.60 0.40 0.60 0.40 Security Returns if State Occurs Calculate the expected return on a portfolio of 30 percent Roll and 70 percent Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Roll -14% 32 Portfolio Return if State Occurs % Ross E(RP)= 15% 5 Product % % %
Security Returns ifState Occurs State of Economy Probability ofState of Economy Roll Ross Bust .40 −11 % 15 % Boom .60 22 5 Calculate the expected return on a portfolio of 50 percent Roll and 50 percent Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) State of Economy Probability of State of Economy Portfolio Return if State Occurs Product Bust .40 % % Boom .60 % % E(Rp)= %
There are two assets and three states of the economy: State of Economy Recession Normal Soom Probability of State of Economy .30 1.50 20 Rate of Return If State Occurs Stock A -.20 .40 Stock B .10 .30 50 Suppose you have $20,000 total. If you put $15,000 in Stock A and the remainder in Stock B, what will be the standard deviation of your portfolio? (Keep 2 post decimal digits in your final answer)
State of Economy Probability ABC Company Expected Return Expected Return XYZ Company Very Poor 0.30 -9% -19% Poor 0.25 -8% -6% Good 0.15 8% 9% Very Good 0.30 34% 33% Expected Return 6.70% 4.05% A) Calculate the covariance of the portfolio. Please answer as a decimal to 4 decimal places. Answer:
es Consider the following information: State of Economy Recession Boom Probability of State of Expected return Economy .28 72 Portfolio Return if State Occurs Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) -.13 .23 %
State of Economy Bust Boon State of Economy Bust Boom Probability of State of Economy .20 .80 Calculate the expected return on a portfolio of 60 percent Roll and 40 percent Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Probability of State of Economy 20 .80 Portfolio Return if State Occurs % % Security Returns if State Occurs E(R) Roll -134 24 Ross 17% 6 Product % % %
Consider the following information: State of Probability of Portfolio Return Economy State of Economy If State Occurs Recession <- Boom 21 .79 Expected return Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 11 .21 %
Consider the following information: State of Economy Recession Normal Boom Probability of State of Expected return Economy .17 .53 .30 Portfolio Return if State Occurs -.13 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % 14 .22