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Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing Her analysis suggests that four states of the

Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find Probability 0.3 Boom 0.1 Good Level Slump Return 25.00% 15.00% 10.00% -5.00% 0.3 0.3 What is the expected return on Barbara's investment? (Round answer to 3 decimal places, e.g. 0.076.) Expected return LINK TO TEXT What is the standard deviation of the return on Barbara's investment? (Round intermediate calculations and answer to 5 decimal places, e.g. 0.07680.) Standard deviation
Problem 6.27 David is going to purchase two stocks to form the initial holdings in his portfolio. Iron stock has an expected return of 22 percent, while Copper stock has an expected return of 15 percent. If David plans to invest 30 percent of his funds in Iron and the remainder in Copper, then what will be the expected return from his portfolio? (Round answer to 1 decimal place, e.g. 17.5%.) Expected return LINK TO TEXT VIDEO: CONCEPTS IN ACTION What would the expected return of David's portfolio be if he invested 70 percent of his funds in Iron stock? tad return of David's nortfolio be if he invested 70 percent of his funds in Iron stock? (Round answer to 1 decimal place, e.a. 17.5%.) Expected return

Aug 16 2020 Read more Less More

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