Kia Corp. believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? ( the stock variance of 48.509).
Economy, Probability, Expected return
Boom | 0.19 | 25% |
Normal | 0.50 | 15% |
Recession | 0.31 | 5% |
Stock | |||||
Scenario | Probability | Return% | =rate of return% * probability | Actual return -expected return(A)% | (A)^2* probability |
Boom | 0.19 | 25 | 4.75 | 11.2 | 0.00238336 |
Normal | 0.5 | 15 | 7.5 | 1.2 | 7.2E-05 |
Recession | 0.31 | 5 | 1.55 | -8.8 | 0.00240064 |
Expected return %= | sum of weighted return = | 13.8 | Sum=Variance Stock= | 0.00486 | |
Standard deviation of Stock% | =(Variance)^(1/2) | 6.97 | |||
Coefficient of variation= | Std. dev./return= | 0.5051 |
Kia Corp. believes the following probability distribution exists for its stock. What is the coefficient of...
Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Do not round your intermediate calculations. State of Probability Stock's the of State Expected Economy Occurring Return Boom 0.14 25% Normal 0.50 15% Recession 0.36 5%
6. Roenfeld Corp believes the following probability distribution exists for its stock. What: the coefficient of variation on the company's stock? Probability Stock's State of of State Expected the Economy Occurring Return Boom 0.45 25% Normal 15% 0.50 0.05 Recession
Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Do not round your intermediate calculations. Probability Stock's of State Expected the Economy Occurring Return 0.14 Boom Normal Recession 0.50 0.36 0.5775 0.4725 0.4463 5513
Problem 1 FIN300 Corp. believes the following probability distribution exists for its stock. What is the expected return and the standard deviation of the company's stock? State of the Econom Boom Normal Recession Probability of State Occurrin 0.30 0.50 0.20 Stock's Expected Return 25% 15% -5%
Question 3 Roenfeld Corp. believes the following probability distribution exists for its stock. What is the expected return of the company's stock? State of the Economy Probability. Return Expected Boom 0.35 25% Normal 0.40 15% Recession 0.25 13% 17% 15% 14% 16%
You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock? Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 30.00% 19.55% Normal 51.00% 16.35% Recession 19.00% 9.50%
3. Profit corp. analysts estimated the following probability distributions for its stocks. What is their expected rate of return? State of Economy Stock return Prob. of state occurring Recession Normal Boom -5% 5% 15% 4. Turner corp. stocks had a required rate of return of 8%. Risk free rate was 3% and market risk premium was 6%. Analysts are expecting an increase in investor risk aversion increasing market risk premium by 2%. What will be the firm's new required rate...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.03 -0.19 Normal 0.70 0.08 0.15 Boom 0.10 0.12 0.31 Required: Given that the expected return for Stock B is 9.800%, calculate the standard deviation for Stock B. (Do not round your intermediate calculations.)
Question3 10 pts You have been given this probability distribution for the holding-period return for XYZ stock State of economy Probability HPR Boom 0.30 25% Normal 0.50 12% Recession 0.20 -10% What is the expected standard deviation for this stock? 14.66% 0 147.25% О 16.98% 214.92% () 12.13%
Consider the following information: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom 0.25 14% 15% 33% Bust 0.75 12% 3% -6% What is the expected return and standard deviation of returns on an equally weighted portfolio of these three stocks? 2. Consider the following information: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock K Stock M Boom 0.10 25% 18%...