Based on economic conditions, you compiled the following information with estimates of returns from Golden Fish...
Realized returns on Green Hamster Manufacturing Inc. are given in the following table: 2013 16.08% 2014 9.60% 2015 14.52% 2016 30.00% 2017 7.80% Stock Return The average realized return on Green Hamster Manufacturing Inc.'s stock from 2013 to 2017 was Based on economic conditions, you compiled the following information with estimates of returns from Green Hamster Manufacturing Inc.'s stock and the probabilities associated with the economic condition for the next year: Market Condition Probability (p1) Green Hamster Manufacturing Inc. (rn)...
Please answer 5. The probabilistic approach to calculate expected returns Aa Aa Investors are willing to make investments because they expect a return from doing so. As the name suggests, expected returns are not assured. Because they occur in the future, expected returns cannot be observed either, so stock analysts substitute historical realized returns in their mathematical analyses Realized return is the name for returns that have actually been earned. Many analysts use past realized returns to both predict future...
Please answer 5. The probabilistic approach to calculate expected returns Aa Aa Investors are willing to make investments because they expect a return from doing so. As the name suggests, expected returns are not assured. Because they occur in the future, expected returns cannot be observed either, so stock analysts substitute historical realized returns in their mathematical analyses Realized return is the name for returns that have actually been earned. Many analysts use past realized returns to both predict future...
Attempts: 0 Average: 12 5. The probabilistic approach to calculate expected returns Investors are willing to make investments because they expect a return from doing so. As the name suggests, expected returns are not assured. Because they occur in the future, expected returns cannot be observed either, so stock analysts substitute historical realized returns in their mathematical analyses. Realized return is the name for returns that have actually been earned. Many analysts use past realized returns to both predict future...
Following table shows information of future probable economic conditions and associated returns for the Apple and Walmart stocks. Economic Condition Probability Return Apple Walmart Excellent 0.15 0.30 0.14 Good 0.35 0.18 0.08 Poor 0.25 -0.03 -0.01 Crash 0.25 -0.12 -0.04 Calculate expected returns of Apple and Walmart. Calculate standard deviation of the returns of Apple and Walmart. If you want to minimize your risk, which stock would you choose and why? How might the equity market react to each of...