Homework Answers
Expected return on stock is probability weighted return on the stock
Expected return = Probability1 * Return1 + Probability2 * Return2 + Probability3 * Return3 + Probability4 * Return4
Expected Return = 0.20 * -15% + 0.30 * -5% + 0.30 * 15% + 0.20 * 40%
Expected Return = -3% - 1.50% + 4.50% + 8% = 8.00%
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7. An analyst has estimated UAL's stock returns under the following economic states: Er Economic State...
PLEASEE 4. An analyst has estimated UAL's stock returns under the following economic states: Economic State Reces...
PLEASEE
4. An analyst has estimated UAL's stock returns under the following economic states: Economic State Recession Below average Above average Boom Probability 0.20 0.30 0.30 0.20 Return -15% -5% +15% +40% What is UAL's expected return? (Expected return)
6. You have estimated returns of Twitter and Apple under different economic states. If you create...
6. You have estimated returns of Twitter and Apple under different economic states. If you create a portfolio (TwitApple) with 50% of your money in Apple and 50% in Twitter, what is the expected return of your portfolio TwitApple? (Portfolio Expected Return) Probability 0.1 0.2 Economic State Recession Below Average Normal Above Average Boom Rate of return Twitter -40% -20% 10% 40% 60% Apple -15% -5% 8% 16% 20% 0.3 0.3 for tritter
Stock A has the following returns for various states of the economy: State of the Economy...
Stock A has the following returns for various states of the economy: State of the Economy Probability Stock A's Return Recession 5% 15% Below Average 25% -2% Average 40% 9% Above Average 25% 14% Boom 5% 30% Stock A's expected return is: 8.85% 6.60% 7.35% 8.35%
Stock A has the following returns for various states of the economy: State of Economy Probability...
Stock A has the following returns for various states of the economy: State of Economy Probability Stock A's Return Recession 5% -50% Below average 25% -3% Average 35% 10% Above average 20% 20% Boom 15% 45% Stock A's expected return is _________ 11% 22% 4.4% 9.75%
Financial analysts have estimated the returns on shares of Drucker Corporation portfolio under various economic conditions...
Financial analysts have estimated the returns on shares of Drucker Corporation portfolio under various economic conditions as follows. The return for Drucker in the following three economic states of nature are forecasted to be:-15% in recession, +12% in moderate growth, and +36% in a boom. Estimates for the market as a whole in the same economic states are-12% in recession, +7% in moderate growth, and +21 % in boom. The analyst considers each state to be equally likely. Using these...
An analyst has predicted the following returns for Stock A and Stock B in three possible...
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. State Probability A Boom Normal Recession 0.24 0.27 0.49 0.16 0.20 0.10 0.17 0.25 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places) Expected Return Stocks A Stocks B c. Calculate the expected return...
calculate the standard deviation 1. Stock A has the following returns for various states of the...
calculate the standard deviation
1. Stock A has the following returns for various states of the economy: State of the Economy Recession Below Average Average Above Average Boom Probability 10% 20% 40% 20% 10% Stock A's Return -30% -2% 10% 18% 40%
4) Stock A has the following returns for various states of the economy: State of the...
4) Stock A has the following returns for various states of the economy: State of the Economy Probability 9% Stock A's Return -72% Recession Below Average Average Above Average 16% -15% 51% 16% 14% 35% Вoom 10% 85% Stock A's expected return is A) 16.5%. B) 9.9% C) 13.8% 1
TURN MANAGEMENT formative forum-Graded 4) Stock A has the following returns for various states of the...
TURN MANAGEMENT formative forum-Graded 4) Stock A has the following returns for various states of the economy: State of the Economy Recession Below Average Average Above Average Boom Probability 9% 16% 51% 14% 10% Stock A's Return -72% -15% 16% 35% 85% Stock A's expected return is A) 16.5%. C) 13.8%. D) 12.7%. B) 9.9%.
calculate the standard deviation of the returns 3. Stock A has the following returns for various...
calculate the standard deviation of the returns
3. Stock A has the following returns for various states of the economy State of the Economy Probability Recession 10% Below Average 20% Average 40% Above Average 20% Boom 10% Stock A's Return -30% -2% 10% 18% 40%
PLEASEE
4. An analyst has estimated UAL's stock returns under the following economic states: Economic State Recession Below average Above average Boom Probability 0.20 0.30 0.30 0.20 Return -15% -5% +15% +40% What is UAL's expected return? (Expected return)
6. You have estimated returns of Twitter and Apple under different economic states. If you create a portfolio (TwitApple) with 50% of your money in Apple and 50% in Twitter, what is the expected return of your portfolio TwitApple? (Portfolio Expected Return) Probability 0.1 0.2 Economic State Recession Below Average Normal Above Average Boom Rate of return Twitter -40% -20% 10% 40% 60% Apple -15% -5% 8% 16% 20% 0.3 0.3 for tritter
Financial analysts have estimated the returns on shares of Drucker Corporation portfolio under various economic conditions as follows. The return for Drucker in the following three economic states of nature are forecasted to be:-15% in recession, +12% in moderate growth, and +36% in a boom. Estimates for the market as a whole in the same economic states are-12% in recession, +7% in moderate growth, and +21 % in boom. The analyst considers each state to be equally likely. Using these...
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. State Probability A Boom Normal Recession 0.24 0.27 0.49 0.16 0.20 0.10 0.17 0.25 a. What is the probability of a recession? (Round your answer to 2 decimal places.) Probability 0.26 b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places) Expected Return Stocks A Stocks B c. Calculate the expected return...
calculate the standard deviation
1. Stock A has the following returns for various states of the economy: State of the Economy Recession Below Average Average Above Average Boom Probability 10% 20% 40% 20% 10% Stock A's Return -30% -2% 10% 18% 40%
4) Stock A has the following returns for various states of the economy: State of the Economy Probability 9% Stock A's Return -72% Recession Below Average Average Above Average 16% -15% 51% 16% 14% 35% Вoom 10% 85% Stock A's expected return is A) 16.5%. B) 9.9% C) 13.8% 1
TURN MANAGEMENT formative forum-Graded 4) Stock A has the following returns for various states of the economy: State of the Economy Recession Below Average Average Above Average Boom Probability 9% 16% 51% 14% 10% Stock A's Return -72% -15% 16% 35% 85% Stock A's expected return is A) 16.5%. C) 13.8%. D) 12.7%. B) 9.9%.
calculate the standard deviation of the returns
3. Stock A has the following returns for various states of the economy State of the Economy Probability Recession 10% Below Average 20% Average 40% Above Average 20% Boom 10% Stock A's Return -30% -2% 10% 18% 40%
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