Problem 11-5 Calculating Expected Return
Consider the following information:
State of Economy |
Probability of State of Economy |
Rate of Return if State Occurs | ||||
Recession | .16 | − | .12 | |||
Normal | .52 | .13 | ||||
Boom | .32 | .21 | ||||
Calculate the expected return. (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
Expected return
Expected Return=Respective return*Respective probability
=(0.16*-12)+(0.52*13)+(0.32*21)
=11.56%
Problem 11-5 Calculating Expected Return Consider the following information: State of Economy Probability of State of...
consider the following information state of economy recession
probability of state of economy .18 rate of return if state occurs
stock a .09
Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information Rate of Return If State Occurs State of Probability of State of Economy 18 Economy Stock A Stock B Recession 09 -13 Normal Boom 59 12 17 16 23 33 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations...
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .30 −.13 Boom .70 .21 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .17 .05 − .21 Normal .62 .09 .08 Boom .21 .16 .25 Calculate the expected return for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Stock A % Stock B % Calculate the standard deviation for each stock. (Do...
Consider the following information: State of Probability of State Rate of Return Economy of Economy if State Occurs Recession -.10 Normal .12 Boom .31 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
Consider the following information: Rate of Return If State Occurs State of Economy Stock A Probability of State of Economy .20 .55 .25 Stock B - 18 .11 Recession Normal Boom .05 .08 .13 28 Calculate the expected return for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Stock A Stock B Calculate the standard deviation for each stock. (Do not round intermediate calculations. Enter your...
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .17 –.12 Normal .48 .14 Boom .35 .33 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) expected return =
Consider the following information: Rate of Probability of State Return State of if State Economy of Economy 17 Occurs Recession -12 Normal 48 14 Boom 35 33 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Consider the following information: Probability of State of Economy State of Economy Recession Normal Boom Portfolio Return If State Occurs - 17 21 46 33 26 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
Consider the following information: State of Probability of Rate of Return Economy State of Economy if State Occurs Recession Boom 30 .70 Calculate the expected return. (Do not round intermediate calculations and enter you answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
Consider the following information: Probability of State of State of Portfolio Return if State Occurs Economy Economy Recession 10 - 15 Normal 60 09 Boom 30 .23 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %