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An anaryst nas preaictea tne Toiiowing returns tor Stock A ana StocK tb in three possioie...
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...
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 Probabili Boom Normal Recession 0.25 .24 0.27 0.49 0.160.20 0.10 0.17 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 for a...
Rate of Return if State Occurs Probability of State of State of Economy Recession Economy Stock...
Rate of Return if State Occurs Probability of State of State of Economy Recession Economy Stock A Stock B 0.20 0.06 -0.11 Normal 0.55 0.13 0.17 Вoom 0.25 0.18 0.37 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.) Answer is complete but not entirely correct. Expected return for A Expected return for B % 12.85 0.95 b. Calculate the standard deviation for the...
Use the following information on states of the economy and stock returns to calculate the expected...
Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) State of Economy Recession Normal Boom Probability of State of Economy 0.45 0.40 0.15 Security Return if State Occurs -5.00% 12.00 16.00 Answer is complete but not entirely correct. Expected return 7.80 %
An investor is considering the purchase of Gryphon stock, which has returns given in the table...
An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Probability Rate of Return Recession 0.27 2% Normal 0.58 9% Boom 0.15 14% Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places. Enter your answers below. E(r) = Correct response: 7.86 % Std. Dev. = Correct response: 3.96±0.01 % The investor decides to diversify by investing $8,000 in Gryphon stock and $7,000 in Royal stock...
Bond Fund Rate of Return Scenario Severe recession Mild recession Normal growth Boom Stock Fund Rate...
Bond Fund Rate of Return Scenario Severe recession Mild recession Normal growth Boom Stock Fund Rate of Return -415 -11.09 Probability 0.05 0.20 0.30 0.65 343 a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return value to 1 decimal place and "Variance" to 4 decimal places.) Answer is complete but not entirely correct. % Mean return Variance 13.5 40.7000 40.7000 squared b. Calculate the value of the covariance...
An investor is considering the purchase of Gryphon stock, which has returns given in the table below.
probabilty rate of returnrecession 0.11 -4%normal 0.4 11%boom 0.49 15%expected return = 11.31standard deviation = 5.70Q: The investor decides to diversify by investing $3,000 in Gryphon stock and $2,000 in Royal stock, which has an expected return of 5.5% and a standard deviation of 9.4%. The correlation coefficient for the two stocks' returns is 0.8. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places.
Use the following information on states of the economy and stock returns to calculate the standard...
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Probability State of Economy of Security Return if State Occurs -10.00% 15.00 21.00 State of Economy 0.50 0.45 0.05 Recession Normal Boom Answer is complete but not entirely correct. Standard deviation 15.29 $ %
9. Award: 7.69 points Problem 13-7 Calculating Returns and Standard Deviations (L01) Consider the following information:...
9. Award: 7.69 points Problem 13-7 Calculating Returns and Standard Deviations (L01) Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 0.15 0.55 0.30 Rate of Return if State Occurs Stock A Stock B 0.17 0.21 0.16 0.18 0.24 0.23 Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return Stock A Stock B Calculate the standard deviation for each stock. (Do...
Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round...
Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 2 decimal places.) Economic State Probability Return Fast growth 0.26 60 % Slow growth 0.37 27 Recession 0.37 –39
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...
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy State Probabili Boom Normal Recession 0.25 .24 0.27 0.49 0.160.20 0.10 0.17 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 for a...
Rate of Return if State Occurs Probability of State of State of Economy Recession Economy Stock A Stock B 0.20 0.06 -0.11 Normal 0.55 0.13 0.17 Вoom 0.25 0.18 0.37 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.) Answer is complete but not entirely correct. Expected return for A Expected return for B % 12.85 0.95 b. Calculate the standard deviation for the...
Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) State of Economy Recession Normal Boom Probability of State of Economy 0.45 0.40 0.15 Security Return if State Occurs -5.00% 12.00 16.00 Answer is complete but not entirely correct. Expected return 7.80 %
Bond Fund Rate of Return Scenario Severe recession Mild recession Normal growth Boom Stock Fund Rate of Return -415 -11.09 Probability 0.05 0.20 0.30 0.65 343 a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return value to 1 decimal place and "Variance" to 4 decimal places.) Answer is complete but not entirely correct. % Mean return Variance 13.5 40.7000 40.7000 squared b. Calculate the value of the covariance...
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Probability State of Economy of Security Return if State Occurs -10.00% 15.00 21.00 State of Economy 0.50 0.45 0.05 Recession Normal Boom Answer is complete but not entirely correct. Standard deviation 15.29 $ %
9. Award: 7.69 points Problem 13-7 Calculating Returns and Standard Deviations (L01) Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 0.15 0.55 0.30 Rate of Return if State Occurs Stock A Stock B 0.17 0.21 0.16 0.18 0.24 0.23 Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return Stock A Stock B Calculate the standard deviation for each stock. (Do...
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