Expected return = Sum of (Probability x return) = 0.25 x 17% + 0.50 x 12% + 0.25 x -15% = 6.5%
Dothan Inc's stock has a 25% chance of producing a 17% return, a 50% chance of...
Dothan Inc.'s stock has a 25% chance of producing a 16% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -14% return. What is the firm's expected rate of return? Do not round your intermediate calculations. a. 4.29% b. 4.68% c. 4.51% d. 5.50% e. 6.50%
QUESTION Dothan Ines stock has a 25% chance of probing a head chance of producing a -18 return. What is the firm's expected to en 09354 10.50% 10.40% 09.14% O 11.76%
1. Taggart Inc.'s stock has a 50 % chance of producing a 25% return, a 30 % chance of producing a 10% return, and a 20 % chance of producing a -28% return. What is the firm's expected rate of return?
QUESTION 1 Maxwell Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of produicng a -28% return. What is the firm's expected rate of return? O a. 9.65% O b.9.41% O c. 9.90% O d. 10.15%
Josh has invested in a stock that has a 5% chance of producing a +12% return, a 20% chance of producing a +30% return, a 25% chance of producing a -8% return, and a 50% chance of producing a +10% return. Determine Josh's expected rate of return on this investment. 7.1% 5.4% 6.7% 9.6%
Fire and Ice Corp.'s stock has an 18% chance of producing a 30% return, a 55% chance of producing a 12% return, and a 27% chance of producing a −18% return. What is the firm's expected rate of return? (Provide your answer as a decimal to the 4th decimal place)
Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance of producing a 22% return, a 40% chance of producing a 9% return, and a 20% chance of producing a –28% return. What is the firm’s coefficient of variation of return? Enter your answer rounded to two decimal places. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
1. a) Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance of producing a 22% return, a 40% chance of producing a 7% return, and a 20% chance of producing a –28% return. What is the firm’s coefficient of variation of return? 1. b) High Growth’s annual stock returns over the last 7 years are: 27%, –18%, 34%, 11%, –28%, 55%, and –15%. What is High Growth’s standard deviation of return? 1. c)...
Question 22 Stock Y has an expected return of 14% and beta of 1.80. Stock Z has an expected return of 11.50% and beta of 1.10. If the risk-free rate is 3.5% and the market risk premium is 6.5%, which security is overvalued? Stock Y, because it plots below the SML Stock Z, because it plots below the SML Stock Z, because it plots above the SML Stock Y, because it plots above the SML No answer text provided. Flag...
5. Porter Inc's stock has an expected return of 12.25%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium?