Economy Probability Return Probability*Return
Boom 0.65 30% 30%*0.65 = 19,5%
Recession 0.35 -2% -2%*0.35 = - 0.7%
Expected Return = 19.5% - 0.7%
= 18.8%
OPEN ENDED Question 2. Provide your calculations with your answer. Calculate the expected return based on...
6. Calculating Expected Return Based on the following information, calculate the expected return. State of EconomyProbability of State of EconomyRate of Return if State OccursRecession.15-.12Normal.60.10Boom.25.277. Calculating Returns and Standard Deviations Based on the following information, calculate the expected returns and standard deviations for the two stocks. State of EconomyProbability of State of EconomyRate of Return if State OccursStock AStock BRecession.10.02-.30Normal.50.10.18Boom.40.15.3110. Returns and Standard Deviations Consider the following information: State of EconomyProbability of State of EconomyRate of Return if State OccursStock AStock BStock CBoom.15.33.45.33Good.55.11.10.17Poor.20.02.02-.05Bust.10-.12-.25-.09a. Your...
5. Calculating Expected Return (L01) Based on the following information, calculate the expected return State of Economy Probability of State of Economy Portfolio Retum If State Occurs Recession Boom Click here for a description of Table Questions and Problems 5
OPEN ENDED Question 1. Provide your calculations with your answer. You invested 70% of your funds in ABC stock with an expected rate of return of 10% and the remainder in XYZ stock with an expected return of 15%. The expected return of your portfolio that consists of both stocks is:
OPEN ENDED Question 3. Provide your calculations with your answer. Assume that you want to construct a portfolio with a 15% return from the following two securities I and II. What percentage of your portfolio should be invested in Security I? Security Expected return 18% 10%
A.) Calculate the expected return for the two stocks (Do not round intermediate calculations; enter your answers as a percent rounded to 2 decimal places). B.) Calculate the standard deviation for the two stocks (Do not round intermediate calculations; enter your answers as a percent rounded to 2 decimal places). Consider the following information: Probability of Rate of Return if State Occurs State of Economy Stock A Stock B .030 -.39 .59 110 .17 .280 .52 Economy Recession Normal Boom...
Calculate expected return based on the following information 1. Prob.Of State State of Economy Return if State Occurs 10% Recession 20 Normal 50 8% 17% Boom 30
• Based on the following information, calculate the expected return and standard deviation for the two stocks: Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 20% 6% -20% Normal 55% 7% 13% Boom 25% 11% 33%
4. 7. Calculating Returns and Standard Deviations. Based on the following information, calculate the expected return and standard deviation for the two stocks. Probability of State of Economy State of Economy Recession Normal Boom Rate of Return if State Occurs Stock A .02 Rate of Return if State Occurs Stock B -30 .18 .10 .50 .10 40 .15
CHAPTER 11 Risk and Return beta? Who set? Can a Case ulating Expected Return. Based on the following information, calculate the expected return 101 State of Economy Probability of State of Economy Rate of Return If State Occurs tion to nis -09 Recession Normal Boom .15 .60 Street is Normal 25 .30
please help showcase the correct calculations for this question! :) Consider the following information: State of Probability of Portfolio Return Economy State of Economy If State Occurs Recession - 15 Normal Boom 33 46 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return