Expected Ret = Sum [ Prob * ret ]
Prob | Ret | Prob * Ret |
0.25 | 0.10 | 0.0250 |
0.50 | 0.20 | 0.1000 |
0.25 | 0.30 | 0.0750 |
Expected Ret | 0.2000 |
Thus Expected Ret is 20%
Option D is correct.
QUESTION 31 Use the following table to calculate the expected return for the asset. Set your...
QUESTION 26 The expected return for the asset shown in the following table is 18.75 percent. If the return distribution for the asset is described as below, what is the standard deviation for the asset's returns? Set your calculator to at least 6 decimal places. Probability 0.25 0.50 0.25 Return 0.10 0.20 0.25 O 0.002969 O 0.000613 O 0.015195 O 0.054486 O 0.070711
Integrative-Expected return, standard deviation, and coefficient of variation An asset is currently being considered by Perth Industries. The probability distribution of expected returns for this asset is shown in the following table, EEB a. Calculate the expected value of return, r, for the asset. b. Calculate the standard deviation, σ, for the asset's returns c. Calculate the coefficient of variation, CV, for the asset's returns a. The expected value of return, r, for the asset is 13%. (Round to two...
Question 10 (1 point) Use the following figures to calculate the expected return from an asset. Return Probability 0.1 0.25 0.5 0.25 0.25 0.2
The table below shows the one-year return distribution for RCS stocks. Possible Return Ri Probability pi -40% 0.10 -20% 0.20 0% 0.15 20% 0.25 40% 0.30 (a) The expected return is: %. (Round to two decimal places.) (b) The standard deviation is: %. (Round to two decimal places.)
Expected Return Expected Return Expected Return Probability 0.25 Best state Good state Normal state Poor state beta 40% 30% 20% 25% 20% 15% 10% 1.1 15% 12% 9% 6% 0.25 0.25 10% 1.8 0.7 Complete the following table. A Expected average return (e.g., 10.00%) Standard deviation (e.g., 10.00%) If a portfolio consists of A, B, and is structured as follows, complete the table. А 0.20 Portfolio weight в с 0.30 0.50 Portfolio Expected average return (e.g., 10.00%)
Expected Return Expected Return Expected Return Probability A B C Best state 0.25 40% 25% 15% Good state 0.25 30% 20% 12% Normal state 0.25 20% 15% 9% Poor state 0.25 10% 10% 6% beta - 1.8 1.1 0.7 Complete the following table. A B C Expected average return (e.g., 10.00%) % % % Standard deviation (e.g., 10.00%) % % % If a portfolio consists of A, B, and C is structured as follows, complete the table. A B C...
P8-11 2 Integrative: Expected return, standard deviation, and coefficient of variation Three as- sets-F, G, and H-are currently being considered by Perth Industries. The probability distributions of expected returns for these assets are shown in the following table. 5Y0n Asset F Asset G Asset H i Pr, Return, r Pr, Return, r Pr Return, 1 0.10 40% 0.40 35% 0.10 40% 0.20 0.20 10 0.30 10 20 0,40 0.30 -20 0.40 0 10 0.20 -5 0.20 0 0.10 -10 0.10...
Consider the following table: Stock Fund Bond Fund Rate of Return Scenario Severe recession Probability Rate of Return 0.10 -43% -12% Mild recession 0.20 -17% 17% 12% Normal growth 0.30 6% 31% Boom 0.40 4% a. Calculate the values of mean return and variance for the stock fund. (Do not round interr Round "Mean return" value to 1 decimal place and "Variance" to 4 decimal places.) 06 Mean return %-Squared Variance b. Calculate the value of the covariance between the...
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 −43% −12% Mild recession 0.20 −17.0% 12% Normal growth 0.30 17% 6% Boom 0.40 31% 4% 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.) b. Calculate the value of the covariance between the stock and bond funds....
Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases parenthesis after each answer box, only apply for the answers you will type. a. What is the expected return of asset A?...