What is the portfolio expected return what is the variance


Consider the following information about three stocks: Boom .25 .35 .40 .52 Normal .50 .17 .15 .13 Bust .25 .01 − .32 − .40 1.If your portfolio is invested 35 percent each in A and B and 30 percent in C, what is the portfolio expected return? 2. What is the variance? 3. What is the standard deviation? b.If the expected T-bill rate is 3.70 percent, what is the expected risk premium on the portfolio? Approximate expected real return % Exact expected real return % What are the approximate and exact expected real risk premiums on the portfolio? Approximate expected real risk premium % Exact expected real risk premium%

 

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Financial Management: What is the portfolio expected return what is the variance
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