Solution :-
Probability(A) | Return(B) | Expected return(A x B) |
0.20 | -3% | -0.60% |
0.40 | 12% | 4.80% |
0.40 | 27% | 10.80% |
Total | 15.00% |
Thus, expected return of stock XYZ is 15.00%
Question 8 (0.2 points) Consider the following probability distribution of returns on stock XYZ. What is...
Question 8 (0.2 points) Consider the following probability distribution of returns on stock XYZ. What is the expected return of stock XYZ? (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 8.43%, instead of 0.0843) Probability 0.20 0.40 0.40 Return .6% 9 % Your Answer: Answer units
Question 8 (0.2 points) Stock Expected Return $ Invested $200 $300 $400 6% 10% 179 Given the above exhibit, what is the expected return on the portfolio? (Enter your answers as a decimal rounded to 2 decimal places, not a percentage. For example, enter 8.43% instead of 0.0843) Your Answer: Answer units
Question 8Assume that a stocks had an expected return of 12.00 percent and a standard deviation of 7.00 percent. What is the low end of returns would you expect to see 95 percent of the time? (Enter your answers as a percentage rounded to 2 decimal places. For example, enter 8.43% instead of 0.0843) Question 10 Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of -1% and 70% of a stock with an...
Question 13 (0.2 points) If a company's profit margin is 5% and its total asset turnover ratio is 2.1, what is its return on assets (ROA)? Enter your answers as a percentage rounded to 2 decimal places. For example, enter 8.43 (%) instead of 0.0843. Your Answer: Answer
Question 4 (1 point) Stock 1 2 3 $ Invested S300 S400 $400 Expected Return 6% 12% 17% Given the above exhibit, what is the expected return on the portfolio? (Enter your answers as a decimal rounded to 2 decimal places, not a percentage. For example, enter 8.43% instead of 0.0843) Your Answer: Answer units
Question 12 (0.2 points) Donuts Delite just paid an annual dividend of $1.10 a share. The firm expects to increase this dividend by 8 percent per year the following three years and then decrease the dividend growth to 2 percent annually thereafter. Which one of the following is the correct computation of the dividend for year 5? O 1) ($1.10) (1.08)3 (1.02)3 O2) ($1.10) (1.08 x 3) (1.02 * 3) O 3) ($1.10) (1.08 * 3) (1.02 x 4) O4)...
Question 13 (0.2 points) Which one of the following is the computation of the risk premium for an individual security? E(R) is the expected return on the security, Rfis the risk-free rate, B is the security's beta, and E(RM) is the expected rate of return on the market. O 1) E(RM) - RF O2) B[E(RM) - RA O 3) E(R) - E(RM) 04) E(R) - [E(RM) + RA View hint for Question 13 Question 14 (0.2 points) Which one of...
Question 19 (1 point) Calculate the expected return on a stock with a beta of 1.19. The risk-free rate of return is 2% and the market portfolio has an expected return of 9%. (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%) Your Answer Answer
Question 12 (0.2 points) During the latest year, Sky Inc had total sales of $500,000, net income of 30,000, and its year-end total assets were $260,000. The firm's total debt to total assets ratio was 0.38. You can assume total debt is the same as total liabilities. What is firm's return on equity (ROE)? Enter your answer as a percentage rounded to 2 decimal places. For example, enter 8.43 %) instead of 0.0843. Your Answer: Answer
Question 1 (0.2 points) You want to buy a house in 10 years and expect to need $40000 for a down payment. If you have $11000 to invest, how much interest do you have to earn (compounded annually) to reach your goal? (Enter your answers as a decimal rounded to 4 decimal places, not a percentage. For example, enter 0.0843 instead of 8.43%) Your Answer: Answer