3. Calculate the probability-weighted expected return and standard deviation for the stock below State of the...
Calculate the expected return and standard deviation for the following single stock: State of economy Probability of state of economy Return if state of economy occurs Recession .15 .02 Normal .25 .08 Boom .60 .12 The expected return and standard deviation, respectively, are: 9.8%, 2.95% 7.33%, 4.18% 9.50%, 3.57% 9.50%, 4.18% 7.33%, .1275%
What are the expected return and standard deviation of the possible returns below? Economy Probability Return Good 0.60 25% Bad 0.40 -15% Please show work and formulas used
Q5 What is the standard deviation of the expected return for Stock A? State of Economy. Probability of State Return of Stock A Return of Stock B 0.26 -8.05 3.86 Recession Normal 0.38 6.51 4.9 Boom 1-(0.26 +0.38) 22.18 9.08 Answer should be formatted as a percent with 2 decimal places (e.g. 99.99).
Given the probability distribution below, calculate the expected rate of return for stock A and stock B Rate of return (%) Probability Stock A Stock B 0.1 10 35 0.2 2 0 0.4 12 20 0.2 20 25 0.1 38 45 Stock A = 14%; Stock B = 21% Stock A = 23% ; Stock B = 12% Stock A = 25%; Stock B = 15% Stock A =31% ; Stock B = 27%
Given the following information, calculate the expected return and standard deviation for a portfolio that has 35 percent invested in Stock A, 45 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Returns State of Probability of Economy State of Economy Boom 0.40 Bust 0.60 Stock A 15% 10 Stock B 18% Stock C 20% -10 Expected return Standard deviation
• Based on the following information, calculate the expected return and standard deviation for the two stocks: Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 20% 6% -20% Normal 55% 7% 13% Boom 25% 11% 33%
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...
Probability of State of Economy State of Economy Return of Stock A Return of Stock B 0.20 Bear 0.05 -0.05 0.40 Normal 0.07 0.10 0.40 Bull 0.10 0.20 A) Calculate the expected return for each stock. B) What is the correlation between the returns of the two stocks? C) Assume the market has an expected return of 10% and a standard deviation of 20%. Also, ρB,M = 0.8. Calculate Beta for Stock B.
Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage returns Economic recession 25% 1% Steady economic growth 22% 9% Boom Please calculate it 17%
Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage returns Economic recession 10% 2% Steady economic growth 39% 6% Boom Please calculate it 16% Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)