Question


An analyst has developed the following probability distribution for the rate of return for a common stock. turn 0.29 0.50 0.21 -17% 78 15% a. Calculate the expected rate of return. (Round Intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) Expected rate of retun b. Calculate the varlance and the standard deviation of this probability distribution. (Use the percentage values for your calculations for example 10% not 0 Round intermediate calculations to at least 4 dec rounded to 2 decimal places.) imal places. Enter your answer as a percentage 9 Variance Standard deviation -%
0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
An analyst has developed the following probability distribution for the rate of return for a common...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • An analyst has developed the following probability distribution for the rate of return for a common...

    An analyst has developed the following probability distribution for the rate of return for a common stock. f Return 0.29 0.50 0.21 -17% 158 a. Calculate the expected rate of return. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) Expected rate of return b. Calculate the variance and the standard deviation of this probability distribution. (Use the percentage values for your calculations (for example 10% not 0.10). Round intermediate calculations to at...

  • An analyst has developed the following probability distribution for the rate of return for a common...

    An analyst has developed the following probability distribution for the rate of return for a common stock. Scenario Probability Rate of Return 0.24 0.47 0.29 -8% 2% 25% a. Calculate the expected rate of return. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) Expected rate of return b. Calculate the variance and the standard deviation of this probability distribution. (Use the percentage values for your calculations (for example 10% not 0.10). Round...

  • An analyst has developed the following probability distribution for the rate of return for a common...

    An analyst has developed the following probability distribution for the rate of return for a common stock. Scenario Probability Rate of Return 0.24 0.47 0。29 -8% 2% 25% 2 a. Calculate the expected rate of return. (Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) Expected rate of 6271% b. Calculate the variance and the standard deviation of this probability distribution. (Use the percentage values for your (for example 10% not 0.10). Round...

  • An analyst has developed the following probability distribution of the rate of return for a common...

    An analyst has developed the following probability distribution of the rate of return for a common stock. Scenario Probability Rate of Return 1 .30 -6% 2 .38 4% 3 .32 28% a. Calculate the expected rate of return. (Round your answer to 2 decimal places.) Expected rate of return % b. Calculate the variance and standard deviation of this probability distribution. (Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places.) Variance Standard deviation

  • Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of...

    Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of this Company's Products Demand Occurring Weak 0.1 Below average Average 0.4 Above average 0.2 Strong Rate of Return if This Demand Occurs (%) -30% 0.2 30 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places. Expected return: Standard deviation:

  • eBook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability...

    eBook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of This Company's Products Demand Occurring Weak 0.1 Below average Average Above average Strong Rate of Return if This Demand Occurs (%) -35% 35 0.1 65 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places. Expected return: Standard deviation:

  • EXPECTED RETURN A stock's returns have the following distribution: Demand for the Probability of this Rate...

    EXPECTED RETURN A stock's returns have the following distribution: Demand for the Probability of this Rate of Return If Company's Products Demand Occurring This Demand Occurs Weak (44%) Below average (11) Average Above average Strong a. Calculate the stock's expected return. Round your answer to two decimal places. % b. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. c. Calculate the stock's coefficient of variation. Round your answer to two decimal...

  • A stock's returns have the following distribution: Probability of this Rate of Return If Demand Occurring...

    A stock's returns have the following distribution: Probability of this Rate of Return If Demand Occurring This Demand Occurs 0.2 Demand for the Company's Products Weak Below average Average Above average Strong 0.2 (8) 0.3 0.1 0.2 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round Intermediate calculations. Round your answers to two decimal places. Stock's expected return: Standard deviation: Coefficient of variation: Sharpe ratio:

  • A stock's returns have the following distribution: Demand for the Probability of this Rate of Return If Company's...

    A stock's returns have the following distribution: Demand for the Probability of this Rate of Return If Company's Products - Demand Occurring This Demand Occurs Week Below average Average Above average Strong standard deviation coefficient variation, and Sharpe ratio. Do not round intermediate calculations. Round your answer to two decimal Assume the rise free rate is 44. Calculate the stock's expected retur places Stock's expected t Standard deviation Conticians of varensioni Sharper

  • Need Standard Deviation еВook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand...

    Need Standard Deviation еВook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of This Rate of Return if This Company's Products Demand Occurring Demand Occurs (%) Weak 0.1 -40% Below average 0.2 -8 Average 0.4 6 Above average 0.2 30 Strong 0.1 60 1.0 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places. Expected return: 8.8 % Standard deviation: %

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT