Based on the following information, the expected return is percent. (Do not incl

Question

Based on the following information, the expected return is  percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Based on the following information, the expected return is  percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

1> Expected Return=0.25*(-0.04)+0.75*0.32 0.23 2>Expected Return(Ea)=0.2*0.03+0.6*0.08+0.2*0.13 0.08 E(a^2)=0.2*(0.03^2)+0.6*(0.08^2)+0.2*(0.13^2) 0.0074 SD=Square Root(0.0074-0.08^2) 0.0316 2>Expected Return(Eb)=0.2*(-0.18)+0.6*0.14+0.2*0.32 0.112 E(b^2)=0.2*(-0.18^2)+0.6*(0.14^2)+0.2*(0.32^2) 0.0387 SD=Square Root(0.0387-0.112^2) 0.162 3>Expected Return=0.52*19+0.32*16+0.16*11 16.76

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