sandovals8 - State Probability Bank of America Fed Raises...

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State Probability Bank of America Fed Raises Interest Rates 0.5% 0.2000  0.2400  0.1300  Fed Raises Interest Rates 0.25% 0.3000  0.1700  0.1400  Fed Raises Leaves Rates Unchanged 0.4000  0.0800  0.2100  Fed Lowers Rates 0.25% 0.1000  0.1200  0.3900  Expected Rate of Return 14.30% 19.10% Variance of the Expected Rate of Return 0.003741 0.005629 Standard Deviation of Rate of Return 6.12% 7.50% Portfolio Allocations 15.00% 40.00% Beta Coefficents 2.68 1.65 Portfolio Expected Portfolio Return 19.58% Portfolio Return When: Fed Raises Interest Rates 0.5% 19.05% Fed Raises Interest Rates 0.25% 16.45% Fed Raises Leaves Rates Unchanged 21.15% Fed Lowers Rates 0.25% 23.75% Variance of Portfolio 0.0005720 Standard Deviation of Portfolio 0.0239167 Portfolio Beta 1.29 Calculating Variance Bank of America Probability Outcome Expected Return Fed Raises Interest Rates 0.5% 0.2000  0.2400  0.1430  Fed Raises Interest Rates 0.25%
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This note was uploaded on 09/23/2009 for the course AEB 3144 taught by Professor Gunderson during the Spring '09 term at University of Florida.

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sandovals8 - State Probability Bank of America Fed Raises...

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