### Computation of variance and standard deviation

Assignment Help Finance Basics
##### Reference no: EM1316525

Computation of Variance and standard deviation of a portfolio

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 .20 .30 .45 .33
Good .40 .12 .10 .15
Poor .30 .01 -.15 -.05
Bust .10 -.06 -.30 -.09

Your portfolio is invested 30 percent each in A and C, and 40 percent in B. What is the expected return of the portfolio?

What is the variance of this portfolio? The standard deviation?

#### Questions Cloud

 Much susceptible to hypnosis which university of tennessee : University of Waterloo are much susceptible to hypnosis which University of Tennessee undergraduates. Set up H0 and Ha for the test. Find probability values using the addition rule : Suppose that 46 percent of families living in a certain country own a car and 18 percent own an SUV. The Addition Rule might suggest, then, that 64 percent of families own either a car or an SUV. What's wrong with that reasoning. Determine of foreign currency exposure : Evaluation of Foreign Currency Exposure due to changes in currency rates - What is Rolls-Royce's dollar transaction exposure in dollar terms? In pound terms? Find the distance : Find the distance. Computation of variance and standard deviation : Computation of Variance and standard deviation of a portfolio and what is the expected return of the portfolio What is the likely number of withdrawals : A university found that 20 percent of its students withdraw without completing the introductory statistics course. 20 students registered for a section of the course this term. Utilize a test of the difference among proportions : Utilize a test of the difference among proportions when answering these questions. Illustrate the research hypothesis. Find the probability using normal distribution : Based on the model N(1152,84) describing Angus steer weights, what are the cutoff values for. Descriptive statistics for specific data : The dealership would now like some general information based on the entire sample of vehicles. Calculate and explain the following:

### Write a Review

#### Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

#### A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

#### Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

#### Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

#### Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

#### What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

#### State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

#### Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

#### Effect of financial leverage

The Effect of Financial Leverage and working capital management

#### Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

#### Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

#### Time value of money

Time Value of Money project

#### Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd