5. Given below are the probability distribution of two assets-X and Y States of Economy Probability...
Given 2 projects, their probability distribution and their possible returns for various states of the economy, your task is to choose one of them for investment. State of the Economy Probability of occurrence of state of economy (Pi) Profit of project A if state of economy occurs Profit of project B if state of economy occurs BOOM 0.2 600 1000 NORMAL 0.6 500 500 RECESSION 0.2 400 0 The investor is expected to select the project that is less risky....
Consider the following probability distribution of returns estimated for a proposed project that involves a new ultrasound machine: State of the Probability Rate of economy of occurrence return Very poor 0.1 -10% Poor 0.2 0% Average 0.4 10% Good 0.2 20% Very good 0.1 30% a. What is the expected rate of return on the project? b. What is the project's standard deviation of returns? c. What is the project's coefficient of variation (CV) of returns? d. What type of...
NAME: There are two assets and two states of the economy. State of Economy Probability of State Rate of Return of Stock A Rate of Return of Stock B 15% Recession Boom 0.60 0.40 -10% 30 -5 Suppose you have $30,000 total. If you put $9,000 in Stock A and the remainder in Stock B, what will be the expected return and standard deviation on your portfolio? (5 points)
taiation in probability theory and statistics Variant 13 1. Discrete distribution for X is given by the following table: Probability p Value X 0.2 -10 0.3 10 0.4 30 0.1 50 Find distribution function fa) and median Me@. Calculate mathematical expectation (the mean) Mx), variance (dispersion) DA), standard error σ(X), asymmetry coefficient As(X) and excess Ex(X)
taiation in probability theory and statistics Variant 13 1. Discrete distribution for X is given by the following table: Probability p Value X 0.2 -10 0.3 10 0.4 30 0.1 50 Find distribution function fa) and median Me@. Calculate mathematical expectation (the mean) Mx), variance (dispersion) DA), standard error σ(X), asymmetry coefficient As(X) and excess Ex(X)
taiation in probability theory and statistics Variant 13 1. Discrete distribution for X is given by the following table: Probability p Value X 0.2 -10 0.3 10 0.4 30 0.1 50 Find distribution function fa) and median Me@. Calculate mathematical expectation (the mean) Mx), variance (dispersion) DA), standard error σ(X), asymmetry coefficient As(X) and excess Ex(X)
Consider the following information: Rate of return if state occurs State of economy Probability of state of economy Stock A Stock B Boom 0.2 24% 45% Good 0.35 9% 10% Poor 0.3 3% -10% Bust ?? -5% -25% You have $2,000 invested in stock A and $3,000 invested in stock B. Compute the expected return and total risk of this portfolio.
Normal Chapter& 8-1 Risk-Return Trade-ofr The prie f sock today i $3dhare. In one year, the stock allbe worth $28/share and give a Bond's price after a year (28)-Bond's price today (33)-5 Dividends (2)-5+2--3 Total return on stock (-3/33-00909-) 9.09% 8-2a Statistical Measures of Stand-Alone Risk What would the stand-alone risk for a Treasury bill be (.e high, medium, low, none, etc.)? Low 8-2b Measuring Stand-Alone Risk: The Standard Deviation Calculate the standard deviation for a stock given the information...
Stocks X and Y have the following probability distributions of expected future returns: Probability 0.1 0.2 0.4 0.2 0.1 (10%) 2 12 20 48 (35%) 0 20 25 What are the expected returns of both X and Y? O 12% and 15% 13% and 14% 13% and 16% 13% and 15% 12% and 14%
Four decimal places Given the probability distributions for variables X and Y shown to the right, compute the terms below. 0.4 0.2 0.3 - 150 70 200 250 50 40 20 10 a.EX) and E(Y) b. σχ and σγ C.ƠXY d' E(X + Y)