SOLVE THE PROBLEM STEP BY STEP THE ANSWER IS 3.9%
expected return = sum of (probability * return)
= 0.36 * -12% + 0.17 * 13% + 0.18*17% + 0.27 * 11%
= 3.92%
= 3.9%
SOLVE THE PROBLEM STEP BY STEP THE ANSWER IS 3.9% Please see portfolio composition below: Probability...
Probability - Solve the problem below. Show step by step how to solve the problem. I am a beginner to probability The game of Pairs has a deck with 1 one, 2 twos, 3 threes, up to 10 tens, for 55 cards. Suppose A has 6,5,3 and B has 10,6,5. If it is A's turn to draw, what is the probability that A pairs? If it is B's turn to draw, what is the probability that B pairs?
Discrete probability problems
0.2 pts Question 12 The table below is a discrete probability distribution in which x represents the number of tudents that a statistics tutor may see on any given day and Pix) represents the probability that the tutor sees that number of students. P(x) О.11 0.18 e.36 e.16 e.14 e.es What is the mean of this discrete probability distribution? (Round to the nearest hundredth.) Question 13 0.2 pts The table below is a discrete probability distribution in...
Consider the following information on a portfolio of three stocks Probability of State of State of Stock A Stock B Stock C Economy Rate of Return Rate of Return Rate of Return Economy 14 Boom 03 .33 .59 Normal 54 11 13 21 Bust .32 17 -12 -36 a. If your portfolio is invested 38 percent each in A and B and 24 percent in C, what is the portfolio's expected return, the variance, and the standard deviation? (Do not...
Consider the following information about three stocks: Probability of Rate of Return if State of Economy State State Occurs Stock A Stock B Stock C 0.24 Boom 0.35 0.36 0.55 0.13 Normal 0.50 0.17 0.09 -0.28 Bust 0.15 0.00 -0.45 a. What is the expected return of Stock A? The standard deviation? (6 points) b. If your portfolio is invested 40% each in A and B and 20% in C, what is the portfolio expected return? The standard deviation? (13...
please solve this problem and explain step by step as to how
you got the answer
1 Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle A select Copy Format Painter board BIUX, X' A... E... Fom Paragraph Styles Editing 16. At March 1, 2020, COBM Co. reported stockholders' equity of $175,000. During the month, COBM Co. generated revenues of $40,000, incurred expenses of $17,500, purchased a computer for $3,000 and paid dividends of $3,500. What is the amount...
Consider the following information about three stocks: State of Economy Probability of State Rate of Return if State Occurs Stock A Stock B 0.24 0.36 0.17 0.13 0.00 -0.28 Boom Normal Bust 0.35 0.50 0.15 Stock C 0.55 0.09 -0.45 a. What is the expected return of Stock A? The standard deviation? (6 points) b. If your portfolio is invested 40% each in A and B and 20% in C, what is the portfolio expected return? The standard deviation? (13...
This question is worth zero points. You do not have to solve it. Consider the following information: Rate of Return If State Occurs State of Probability of Stock C Stock A Stock B Economy State Boom 75 08 .17 24 Bust - 08 25 11 05 What is the expected return on an equally weighted portfolio of these three stocks? (1/3) 0.08(1/3)*0.17 + (1/3)*0.24. The return for Hint: The return for Boom = bust is similar. Then, the expected value...
hi please explain step by step how to solve this
Question 19 what is the standard deviation for the following portfolio? The portfolio consists of 25% and 75% of stocks A and B respectively. The correlation between stock A and B is 0.4 (Round your answer to two decimal digits) EIRI 17% 13% Stocks 0.0169 0.0361 A. 15.83% B. 0.b0% C. 2.51% D. 17.00% E. 13.00% F. None of the above is correct.
QUESTION 17 You have are looking at an investment portfolio that will yield the following Stock Probability Beta Expected Return 0.25 1.2023 13% 0.37 0.75 18% 0.17 1.60 24% If you, as the investor, have a required rate of return of 15%, would this portfolio be a good investment? No, because the portfolio return is lower than my required rate of return No, because the portfolio return and my required rate of return are equal Yes, because the portfolio return...
step by step solutions please. no excel solutions
1. Consider the following probability distribution for stocks A and B: (Hint: Use five decimal places for the numbers in your calculations.) B Returns - 2 % A Returns 12% Probability 0.30 State Boom 2% 8% 0.60 Normal 6% 4% 0.10 Bust What are the expected rates of return for stocks A and B? b. What are the variances for A and B? a. c. What are the standard deviations for A...