What is the portfolio variance

Assignment Help Finance Basics
Reference no: EM13291929

A portfolio is expected to return 15 percent in a booming economy, 9 percent in a normal economy, and -3 percent in a recessionary economy. The probability a booming economy is 15 percent while the probability of a recession is 5 percent. What is the portfolio variance?

Reference no: EM13291929

Questions Cloud

Adherents to crime control model oppose plea bargaining : Why do adherents to the crime control model oppose plea bargaining? Why do adherents to the due process model oppose plea bargaining? Discuss the caseload hypothesis and other explanations for plea bargaining.  Explain which theory you believe provid..
Calculate generated emf and regulation of the alternator : A 3-phase,4pole star connected turbo alternater has a cylindrical rotar. The reactance and resistance perphase of winding is 2.5 ohms and 0.15 ohms.The alternater hasterminal potential difference of 6600V when delivering a current of250Amps.
What is the sound level number : The sound level of a single vacuum cleaner is about 75dB and a television is about 55dB. What is the sound level number
What is the reward-to-risk ratio : The U.S. Treasury bill is yielding 5.1 percent while a stock with a beta of 1.08 is yielding 12.3 percent. What is the reward-to-risk ratio?
What is the portfolio variance : A portfolio is expected to return 15 percent in a booming economy, 9 percent in a normal economy, and -3 percent in a recessionary economy. The probability a booming economy is 15 percent while the probability of a recession is 5 percent. What is ..
How to calculate values of delta u and q : An ideal gas is compressed isothermically by a force of 85 newtons acting through .24 meter. Calculate values of delta U and q.
Calculate how many turns are there in the coil : The magnetic field between the poles of an electromagnet is 2.17 T. A coil of wire is placed in this region so that the field is parallel to the axis of the coil. How many turns are there in the coil
Accuracy of a particular weather forecaster : To check the accuracy of a particular weather forecaster, records were checked only for those days when the forecaster predicted rain " with 30% probability". A check of 25 of those days indicated that it rained on 10 of the 25.
How important is the use of foreign currency derivatives : How important is the use of foreign currency derivatives to an MNE? Provide a specific example.

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be the length of its cash conversion cycle

what will be the length of its cash conversion cycle and its working capital financing requirement if the new production process is implemented? Round your answers to two decimal places.

  What is the book value per common share equation

What is the book value per common share equation? The textbook we are using doesn't give us the actual equation for this... I'm a little rusty in my accounting as I have taken accounting in about 2 1/2 years.

  Accept or else reject the project under npv

Accept or else reject the Project under NPV and Profitability Index and What is the net present value of a project with the following cash flows and a required return of 12%

  Compute the total principal payments and total interest

With a $400k home mortgage loan with a 15 year term at 9% APR compounded monthly, compute the total principal payments and total interest (undiscounted) paid over the first 5 years of ownership.

  Make a cash budget

Of Sharpe's sales 10 percent is for cash, another 60% is collected in the month following sales, and 30% is collected in the second month following sales.

  What is the bond price today

One year ago a $1,000 face value, 6% coupon bond was selling for $1,100. Since then, the market yield has decreased by two percentage points. The bond pays interest semiannually and now has four years to maturity. What is the bond's price today?

  What is the risk structure of interest rates

What is the risk structure of interest rates? And, what are the three major components that are included.

  Consolidation criterion led

When is consolidation considered inappropriate even though the parent holds a majority of the voting common shares of another firm?

  Compute patent amortization expenses

Sony Company purchased a patent for $180,000 on September 1, 2006. It had a useful life of ten years. On January 1, 2008, ELO spent $44,000 to successfully defend the patent in a lawsuit.

  Determine the nine risk types

Determine the nine risk types that financial institutions identify in their annual reports? What are the risk types for financial instituitions in general is really what I am asking.

  What was the firms economic value added

Its weighted average cost of capital is 9% and its federal-plus-state income tax rate was 35. What was the firm's Economic Value Added (EVA), that is, how much value did management add to stockholders' wealth during 2011?

  Draw a graph showing the payoff and profit for a straddle

Draw a graph showing the payoff and profit for a straddle using these options.

Free Assignment Quote

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