Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Rate of Return Scenario Probability Stocks Bonds Recession 0.20 -3% +18% Normal Economy

Rate of Return Scenario Probability Stocks Bonds Recession 0.20 -3% +18% Normal Economy

Rate of Return

Scenario Probability Stocks Bonds
Recession 0.20 -3% +18%
Normal Economy 0.60 +19% +9%
Boom 0.20 +28% +5%
Consider a portfolio with weights of .6 in stocks and .4 in bonds.
a.

What is the rate of return on the portfolio in each scenario? (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Scenario Rate of Return
Recession %
Normal Economy %
Boom %
b.

What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. Which investment would you prefer? (Porfolio, Bonds, or Stocks)

Jun 05 2021 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions