Question: State Probability % Return A % Return M Good .3 20 16 Normal .4 18 10 Bad .3 10 14 Compute the following:
1) Expected return for A and M
2) Standard deviation for A and M (population)
3) Covariance(A,M
4) Correlation(A,M
5) Expected return on a portfolio consisting of 30% A and 70% M.
6) Standard deviation of a portfolio consisting of 30% A and 70% M.
7) The Beta of A. (assume that M is the market) BETA = -.0909
8) The portfolio weights for the minimum risk portfolio.