Question

A stock will have a loss of 11.3 percent in a bad economy, a return of...

A stock will have a loss of 11.3 percent in a bad economy, a return of 11.1 percent in a normal economy, and a return of 25 percent in a hot economy. There is 31 percent probability of a bad economy, 34 percent probability of a normal economy, and 35 percent probability of a hot economy. What is the variance of the stock's returns?

.04377

.02188

.03283

.01641

.14793

0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
A stock will have a loss of 11.3 percent in a bad economy, a return of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • A stock will have a loss of 12.1 percent in a bad economy, a return of...

    A stock will have a loss of 12.1 percent in a bad economy, a return of 11.9 percent in a normal economy, and a return of 25.8 percent in a hot economy. There is 23 percent probability of a bad economy, 26 percent probability of a normal economy, and 51 percent probability of a hot economy. What is the variance of the stock's returns? .01714 .15118 .02286 .04571 .03428

  • If the economy booms, RTF, Inc., stock is expected to return 9 percent. If the economy...

    If the economy booms, RTF, Inc., stock is expected to return 9 percent. If the economy goes into a recessionary period, then RTF is expected to only return 5 percent. The probability of a boom is 71 percent while the probability of a recession is 29 percent. What is the variance of the returns on RTF, Inc., stock? .000234 .039200 .000138 .000329 .018150 A stock has a beta of 1.20 and an expected return of 11.3 percent. If the risk-free...

  • If the economy booms, Meyer&Co. stock will have a return of 18.4 percent. If the economy...

    If the economy booms, Meyer&Co. stock will have a return of 18.4 percent. If the economy goes into a recession, the stock will have a loss of 7.5 percent. The probability of a boom is 72 percent while the probability of a recession is 28 percent. What is the standard deviation of the returns on the stock? 11.63% 14.75% 13.52% 9.69% 15.89% 15.89%

  • If the economy booms, RTF, Inc., stock is expected to return 10 percent. If the economy...

    If the economy booms, RTF, Inc., stock is expected to return 10 percent. If the economy goes into a recessionary period, then RTF is expected to only return 2 percent. The probability of a boom is 66 percent while the probability of a recession is 34 percent. What is the variance of the returns on RTF. Inc.. stock? Multiple Choice 000948 001436 037897 036400

  • If the economy booms, Meyer&Co. stock will have a return of 20.8 percent. If the economy...

    If the economy booms, Meyer&Co. stock will have a return of 20.8 percent. If the economy goes into a recession, the stock will have a loss of 13.1 percent. The probability of a boom is 63 percent while the probability of a recession is 37 percent. What is the standard deviation of the returns on the stock? Multiple Choice 13.56% 12.43% 16.37% 14.61% 9.29%

  • There is 7 percent probability of recession, 18 percent probability of a poor economy, 50 percent...

    There is 7 percent probability of recession, 18 percent probability of a poor economy, 50 percent probability of a normal economy, and 25 percent probability of a boom. A stock has returns of −20.5 percent, 4.1 percent, 11.9 percent and 27.6 percent in these states of the economy, respectively. What is the stock's expected return?

  • A stock is expected to earn 15 percent in a boom economy and 7 percent in...

    A stock is expected to earn 15 percent in a boom economy and 7 percent in a normal economy. There is a 35 percent chance the economy will boom and a 65.0 percent chance the economy will be normal. What is the standard deviation of these returns? 3.82 Percent 4.85 Percent 4.97 Percent 5.63 Percent 3. A portfolio consists of 24 percent Stock A, 54 percent Stock B, and 22 percent Stock C. What is the portfolio expected return given...

  • If the economy booms, RTF, Inc., stock is expected to return 12 percent. If the economy...

    If the economy booms, RTF, Inc., stock is expected to return 12 percent. If the economy goes into a recessionary period, then RTF is expected to only return 4 percent. The probability of a boom is 76 percent while the probability of a recession is 24 percent. What is the variance of the returns on RTF, Inc., stock? Multiple Choice .001167 .000887 .034167 .050400

  • 1. The stock of Blue Water Tours, Inc. is expected to return 21.50 percent in a...

    1. The stock of Blue Water Tours, Inc. is expected to return 21.50 percent in a boom economy, 16.50 percent in a normal economy, and lose 15.50 percent in a recessionary economy. What is the expected rate of return on this stock if there is a 7.00 percent chance the economy booms, and an 83.00 percent chance the economy will be normal? 14.13 percent 13.65 percent 13.40 percent 12.48 percent 2. A stock is expected to earn 15 percent in...

  • If the economy is normal, Stock A is expected to return 11.75%. If the economy falls...

    If the economy is normal, Stock A is expected to return 11.75%. If the economy falls into a recession, the stock's return is projected at a negative 12%. If the economy is in a boom the stock has a projected return of 17.4% The probability of a normal economy is 60% while the probability of a recession is 20% and boom is 20%. What is the expected return of this stock? ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT