Suppose your expectations regarding the stock market are as follows: 0.2 State of the Economy Probability...
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.3 Normal growth 0.3 Recession 0.4 HPR 39% 21 -18 E(-) = P(G)() Var(-) = 92 = Š PO[r®) – E("P SD(Y) = g = V Var(r) Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mean Standard deviation
Problem 5-5 Suppose your expectations regarding the stock market are as follows: Probability State of the Economy Boom Normal growth Recession HPR 40% 20 E(A) = PODMG Var() = 02 - PD[C) – EMPA SD() = 0 = Var (7) Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not found intermediate calculation 1 of 5 ili Next > ere to search hin E() = Š P60576) Var(t) = 02 - P()[76) –...
Suppose your expectations regarding the stock market are as follows: Probability HP State of the Economy Boom 42% 23 0.2 Normal growth Recession Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculationsR answers to 2 decimal places Mean Standard deviation The stock of Business Adventures sells for $25 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the...
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.4 43% Normal growth 0.5 23 Recession 0.1 -16 compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.3 42% Normal growth 0.4 15 Recession 0.3 -18 What is the mean? What is the Standard Deviation?
Suppose your expectations regarding the stock market are as follows:State of the EconomyProbabilityHPRBoom0.441%Normal growth0.415Recession0.2-19Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)Mean%Standard deviation%
2. Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession HPR (including dividends) 45.590 12.0 21.0 Probability Ending Price 0.27 0.21 0.52 $140 110 80 Compute the mean and standard deviation of the HPR on stocks. (Omit the % sign in your response. Do not round intermediate calculations. Enter your answers as decimals rounded to 2 places.)
Please solve it by hand or typing, don't use EXCEL.
1. Suppose you have the expectations of the HPR on stock market as follows: State of Economy Recession Normal growth Expansion Probability 0.2 0.7 0.1 HPR -12% 8% 16% A. Compute the mean of HPR on stocks. (3pts) B. Compute the standard deviation of the HPR on stocks. (5pts)
Please solve it by hand or typing, don't use EXCEL.
1. Suppose you have the expectations of the HPR on stock market as follows: State of Economy Recession Normal growth Expansion Probability 0.2 0.7 0.1 HPR -12% 8% 16% A. Compute the mean of HPR on stocks. (3pts) B. Compute the standard deviation of the HPR on stocks. (5pts)
Expected Return, Varianoe & Standard Deviation Suppose your expectations of the stock market are shown as follows: Prob r(s) Boom 0.2 30% Normal 0.5 20% Recession 0.3 -20% (Expected Return(E(r)), variance(o2) and standard deviation (o) Compute the mean of the rate of return on stocks. Risk Premium & Capital Allocation Consider when you decide to invest in a risky portfolio P (with the expected return of 20% and standard deviation of 30 %) and a Treasury bill (The rate of...