Calculating the Expected Return and Standard deviation of RCS Stock:-
Probability (P) | Return (R) | Expected Return (P*R) | Deviation [(R)-(ER)] | [(R)-(ER)]2 | [(R)-(ER)]2*P |
0.10 | -15 | -1.5 | -19 | 361 | 36.1 |
0.20 | -20 | -4 | -24 | 576 | 115.2 |
0.15 | 0 | 0 | -4 | 16 | 2.4 |
0.25 | 20 | 5 | 16 | 256 | 64 |
0.30 | 15 | 4.5 | 11 | 121 | 36.3 |
ER = 4% | Variance = 254 |
i). Expected Return = 4%
ii). Variance = 254
Standard deviation =
= 15.94%
If you need any clarification regarding this solution, then you can ask in comments
If you like my answer then please Up-vote as it will be motivating.
The figure in the popup window, shows the one-year return distribution for RCS stock. Calculate: a....
P10-1 (similar to) The figure in the popup window a. The expected return shows the one-year return distribution for RCS stock. Calculate b. The standard deviation of the return Note: Make sure to round all intermediate calculations to at least five decimal places a. The expected return. The expected return is %. (Round to two decimal places.) 6 Graph/Chart ー2 A:-25% return B:-20% return C: 0% return D: 20% retum E: 25% return Enter your answer in the answer box...
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 rate of return and risk) Summerville Inc. is considering an investment in one of two common stocks. Given the informa standard deviation) and return of each? a. The expected rate of return for Stock A is 15%. (Round to two decimal places) The expected rate of return for Stock Bis 9.9%. (Round to two decimal places) b. The standard deviation for Stock Ais % (Round to two decimal places) ing an investment in one of two common stocks. Given...
(Capital asset pricing model) Levine Manufacturing Inc. in considering several investments in the popup window In The rate on Tremur bite currently 6.0 percent, and the expected return for the market is 118 percent. What should be the required rate of rotum for each Investment using the CAPMYO a. Using the CAPM the required rate of return for security AI IX (Round to two decimal places) b. Using the CAPM, the required rate of return for security Bit Round to...
(Expected rate of return and risk) Summerville Inc. is considering an investment in one of two common stocks. Given the which investment is better, based on the risk (as measured by the standard deviation) information in the popup window: E and return of each? 96 (Round to two decimal places) a. The expected rate of return for Stock A is ]%. (Round to two decimal places) The expected rate of return for Stock B is b. The standard deviation for...
Expected Return: Discrete Distribution
- Calculate the stock's expected Return and standard deviation.
eBook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of This Rate of Return if This Demand Occurs (%) Company's Products Demand Occurring Weak 35 % 0.1 Below average 0.2 -7 0.4 8 Average Above average 0.2 25 0.1 60 Strong 1.0 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two...
An analyst has developed the following probability distribution for the rate of return for a common stock. turn 0.29 0.50 0.21 -17% 78 15% a. Calculate the expected rate of return. (Round Intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) Expected rate of retun b. Calculate the varlance and the standard deviation of this probability distribution. (Use the percentage values for your calculations for example 10% not 0 Round intermediate calculations to at...
Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of this Company's Products Demand Occurring Weak 0.1 Below average Average 0.4 Above average 0.2 Strong Rate of Return if This Demand Occurs (%) -30% 0.2 30 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places. Expected return: Standard deviation:
eBook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of This Company's Products Demand Occurring Weak 0.1 Below average Average Above average Strong Rate of Return if This Demand Occurs (%) -35% 35 0.1 65 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places. Expected return: Standard deviation:
Need Standard Deviation
еВook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of This Rate of Return if This Company's Products Demand Occurring Demand Occurs (%) Weak 0.1 -40% Below average 0.2 -8 Average 0.4 6 Above average 0.2 30 Strong 0.1 60 1.0 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places. Expected return: 8.8 % Standard deviation: %