Expected return = Probability * rates
Expected return = 0.21*(-0.06) + 0.45*0.13 + 0.34*0.26
Expected return = -0.0126 + 0.0585 + 0.0884
Expected return = 0.1343 or 13.43%
Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy .21...
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 Economy Recession Normal Boom Probability of State of Economy 0.21 0.45 0.34 Rate of Return if State Occurs -0.09 0.13 0.30 Required: Calculate the expected return. O 14.16% 2.27% 14.73% 14.87% O O 13.45%
Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 0.11 0.65 0.24 Rate of Return if State Occurs 0.01 0.13 0.26 Required: Calculate the expected return. ? 15.16% ? 14.58% ? 13.85% 0 2.53% ? 15.31% /O
Probability of State of Rate of Return if State State of Economy Economy Occurs Recession .21 -04 Normal 45 Boom .34 25 .14 Calculate the expected return.
Based on the following information, what is the expected return? State of Economy Recession Normal Boom Probability of State of Economy .28 .41 .31 Rate of Return if State Occurs - 9.60% 11.10% 21.40% Multiple Choice 11.19% 8.07% 7.63% 8.50% 13.87%
Consider the following information: Probability of State of Rate of Return if State State of Economy Economy Occurs Recession .11 -.03 Normal .45 .12 Boom .44 .28 Calculate the expected return. Multiple Choice 18.09% 2.47% 16.52% 17.39% 18.26%
Consider the following information: Rate of Return of State Occurs State of Economy Recession Normal Boom Probability of State of Economy 20 .60 20 Stock A .03 .08 .14 Stock B - 21 15 35 Calculate the expected return for Stock A. Calculate the expected return for Stock Calculate the standard deviation for Stock A. Calculate the standard deviation for Stock B.
Consider the following information: Rate of Return If State Occurs State of Economy Recession Normal Boom Probability of State of Economy Stock B 21 Stock A .06 .09 14 58 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 answers as a percent rounded...
Consider the following information: State of Economy Recession Boom Probability of State of Economy .29 .71 Rate of Return if State Occurs -.09 .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.) Expected return 0 %
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...