Homework Answers
Expected return=Sum(probability*returns)=0.25*(-10%)+0.50*(5%)+0.20*(10%)+0.05*(20%)=3.00%
Standard deviation=sqrt(sum(probability*(returns-expected
returns)^2)=sqrt(0.25*(-10%-3%)^2+0.50*(5%-3%)^2+0.20*(10%-3%)^2+0.05*(20%-3%)^2)=8.28%
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holding period retum? (Standard deviation) The following expectations have been made of...
#1 and #3 $39 per share. What is its holdin 2 e is $25 per share....
#1 and #3
$39 per share. What is its holdin 2 e is $25 per share. What is Beta (HPR) The price of ACB, Inc. stock is $34. In six months, its price is $39 ne period return? (HPR) The price of BAC, Inc. stock is $124. In six months, its price is $25 holding period return? (Standard deviation) The following expectations have been made of a project.co expected return and standard deviation. Chert roject. Compute the projets 500 ret...
Please show all work and equations as needed. You have been given the price at t...
Please show all work and equations as needed.
You have been given the price at t -0 (Po) and probability distribution for the price at t-1 (Pi) for three stocks Pi Boom (30%) 70 50 Normal (50%) 60 35 50 Recession (20% 50 20 40 Po Stock A Stock B Stock C 30 45 a. What is the expected holding-period return for each stock? b. What is the expected standard deviation for each stock? C. Suppose the risk-free rate of...
Question3 10 pts You have been given this probability distribution for the holding-period return for XYZ...
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%
a. Given the following holding period returns, compute the average returns and the standard deviations for...
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Consider the following probability distribution of returns estimated for a proposed project that involves a new...
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What is the standard deviation of portfolio A? please show work State Boom Normal Recession Probability...
What is the standard deviation of portfolio A? please show
work
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a. Given the following holding-period returns, compute the average returns and the standard deviations for the...
a. Given the following holding-period returns, compute the
average returns and the standard deviations for the Zemin
Corporation and for the market.
b. If Zemin's beta is 1.98 and the risk-free rate is 7
percent, what would be an expected return for an investor owning
Zemin? (Note: Because the preceding returns are based on monthly
data, you will need to annualize the returns to make them
comparable with the risk-free rate. For simplicity, you can
convert from monthly to...
10.1 Consider the following probability distribution of returns estimated for a proposed project that involves a...
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#1 and #3
$39 per share. What is its holdin 2 e is $25 per share. What is Beta (HPR) The price of ACB, Inc. stock is $34. In six months, its price is $39 ne period return? (HPR) The price of BAC, Inc. stock is $124. In six months, its price is $25 holding period return? (Standard deviation) The following expectations have been made of a project.co expected return and standard deviation. Chert roject. Compute the projets 500 ret...
Please show all work and equations as needed.
You have been given the price at t -0 (Po) and probability distribution for the price at t-1 (Pi) for three stocks Pi Boom (30%) 70 50 Normal (50%) 60 35 50 Recession (20% 50 20 40 Po Stock A Stock B Stock C 30 45 a. What is the expected holding-period return for each stock? b. What is the expected standard deviation for each stock? C. Suppose the risk-free rate of...
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What is the standard deviation of portfolio A? please show
work
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a. Given the following holding-period returns, compute the
average returns and the standard deviations for the Zemin
Corporation and for the market.
b. If Zemin's beta is 1.98 and the risk-free rate is 7
percent, what would be an expected return for an investor owning
Zemin? (Note: Because the preceding returns are based on monthly
data, you will need to annualize the returns to make them
comparable with the risk-free rate. For simplicity, you can
convert from monthly to...
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