Chrome File Edit View History Bookmarks People Window Help * U.S. 100% E Sun 1:5

Question

Chrome File Edit View History Bookmarks People Window Help * U.S. 100% E Sun 1:54 AM Q Access Connect connect This Is Finance! Could You Plex × X già Secure https://newconnect.mheducation.com/flow/connect.html Chapter 11 Review Saved Help Save & Exit Submit Check my work 9 Rate of Return Scenario Recession Normal economy Boor Probability Stocks Bonds 15% 0.2 0.7 -4 % 16 25 10 points Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds. eBook a. What is the rate of return on the portfolio in each scenario? (Enter your answer as a percent rounded to 1 decimal place.) Print References Rate of Return Recession Normal economy Boom b. What are the expected rate of return and standard deviation of the portfolio? (Enter your answer as a percent rounded to 2 decimal places.) Expected return Standard deviation Graw Hill Prex 9of 10H Next

Explanation / Answer

Hence Expected Return is 12.14

Standard Deviation is square root of Variance

a.Rate of Return

b.

Rate of Returns Probability Stocks Bonds Recession 0.2 -4 -15 Normal Economy 0.7 16 11 Boom 0.1 25 3 Portfolio 0.60 in stocks 0.40 in bonds

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.