Expected return is 20.52%
Economy | Probability | rate of return | |
a | b | c=a*b | |
Recession | 0.11 | -0.07 | -0.77% |
Normal | 0.35 | 0.13 | 4.55% |
Boom | 0.54 | 0.31 | 16.74% |
Expected return | 20.52% |
Consider the following information: Probability of State of Economy Rate of Return if State State of...
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.11 -0.08 Normal 0.45 0.14 Boom 0.44 0.26 Required: Calculate the expected return.
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.21 -0.06 Normal 0.45 0.13 Boom 0.34 0.22 Required: Calculate the expected return.
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: 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
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.03 -0.19 Normal 0.70 0.08 0.15 Boom 0.10 0.12 0.31 Required: Given that the expected return for Stock B is 9.800%, calculate the standard deviation for Stock B. (Do not round your intermediate calculations.)
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...
Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.64 0.36 Stock A 0.29 0.07 Stock B Stock C 0.31 0.13 0.27 0.05 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?
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 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 Probability of State of Economy Stock A Stock B Recession 0.20 0.05 -0.22 Normal 0.70 0.08 0.13 Boom 0.10 0.12 0.33 Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) (Click to select)7.80% (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (Click to select)8.00% (c) Calculate the standard deviation for Stock...