Home / Questions / Returns and Standard Deviations Consider the following information Rate of Return If Sta...
Returns and Standard Deviations Consider the following information:
Rate of Return If State Occurs |
||||
State of Economy |
Probability of State of Economy |
Stock A |
Stock B |
Stock C |
Boom |
0.2 |
0.18 |
0.48 |
0.33 |
Good |
0.4 |
0.11 |
0.18 |
0.15 |
Poor |
0.3 |
0.05 |
-.09 |
-.05 |
Bust |
0.1 |
-.03 |
-.32 |
-.09 |
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?
b. What is the variance of this portfolio? The standard deviation?
Jun 17 2020 View more View Less
A lubrication oil with thermal conductivity k fills the annulus (gap) between a long, cylindrical rotating shaft and an outer sleeve, as shown below.The friction that is ...
Jun 21 2020For each of the following, compute the present value Present Value Years Interest Rate Future value12years 6 % $ 15,0513years 12% $47,55728years 13% $882,07330years 10% $546,164
Sep 06 2020Suppose there are two firms that sell slightly different formulations of a perfectly safe sugar substitute. You are the manager of one such firm that produces a product c...
Apr 14 2020Planning is a prerequisite not only for achieving success but also for surviving in a complex and competitive world. Planning gives direction, reduces the impact of chang...
Mar 08 2018a) Develop MATLAB code to plot the theoretical answers (achieved in Example 14) of homogeneous output response as well as complete output response. Give your comments on ...
Apr 15 2020What is the difference between a wave of oscillation versus a wave of translation?2.Why are long wavelength waves considered to be the most powerful? Consider wave base i...
Feb 14 2020Consider the M/G/1 model.(a) Compare the expected waiting time in the queue if the servicetime distribution is (i) exponential, (ii) constant, (iii) Erlang with the amoun...
Aug 06 2020What organizational costs are there of differentiation strategies that do not exist for enterprises that pursue low-cost strategies? Why do they arise?
May 23 2018A company has two machines. During any day, each machine that is working at the beginning of the day has a 1/3 chance of breaking down. If a machine breaks down during th...
Aug 05 2020The process of maintaining the internal balance necessary for survival by importing needed resources from the environment is known as[A] Negative entropy [B] Dynamic hom...
Nov 28 2017