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answer B & C
C. Determine the best course to take for investing.
7 of 17...
You are trying to develop a strategy for investing in two different stocks. The anticipated annual...
You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the probability distribution shown to the right. Complete parts (a) through (c) below. probability economic condition stock x stock y 0.1 recession -120 -30 0.3 slow growth 40 30 0.4 moderate growth 150 110 0.2 fast growth 190 160 a. compute the expected stock return for stock x and for...
You are trying to develop a strategy for investing in two different stocks. The anticipated annual...
You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the probability distribution shown to the right. Complete parts (a) through (d). Returns Probability Economic Condition Stock X (in $’s) Stock Y (in $’s) 0.4 Recession - 55 -80 0.1 Slow growth 30 50 0.2 Moderate growth 110 130 0.3 Fast growth 160 200 Note: Include Excel...
1. You are trying to develop a strategy for investing in two different stocks. The anticipated...
1. You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the following probability distribution: Р (Y) Probability of Annual Р (Х) Economic Stock X Stock Y Condition Returns Returns Return (X) (y) (P) Recession 0.1 -50 -100 Slow Growth 0.3 20 50 Moderate 0.4 100 130 Growth Fast Growth 0.2 200 150 xP(x) a. What is the expected return...
7) You are considering investing in the following stock X. State of the Economy Recession Below...
7) You are considering investing in the following stock X. State of the Economy Recession Below Average Average Above Average Boom Probability 10% 16% 51% 14% 9% Stock x Return - 75% -10% 15% 33% 82% a) Calculate the expected return of the stock. b) Calculate the standard deviation (riskiness) of returns for this stock. c) You are also looking into Stock Y which has the same expected return as Stock X, but a higher standard deviation. Which stock would...
Use the following information to complete the question; compute the expected return, the variance and standard...
Use the following information
to complete the question; compute the expected return, the variance
and standard deviation for the portfolio.
State of Econy Probability that Scale will crear n Retum in slock 1 Return on Ru stock a Recession 0.4 10% Boom 8.8% Expected Return Portfolio Weight 0.30
The correct formula for excel please!! Following are four economic states, their likelihoods, and the potential...
The correct formula for excel please!!
Following are four economic states, their likelihoods, and the potential returns. Economic State Fast growth Slow growth Recession Depression Probability 0.33 0.42 0.15 0.10 Return 56% 15% -12% -42% Compute the expected return and standard deviation. (Do not round intermediate calculations and round your answers to 2 decimal places.) Expected return Standard Deviation Sheet1 ... + DY
You plan to invest $1,000 in a corporate bond fund or in common stock fund. The...
You plan to invest $1,000 in a corporate bond fund or in common stock fund. The following table presents the annual return (per $1000) of each of these investments under various economic conditions and the probability that each of those economic conditions will occur . Probability Economic Corporate| Common Condition Bond Fund Stock Fund 0.02 Extreme Recession . -200 -990 0.08 Recession -70 -300 0.15 Stagnation 30 -100 0.30 Slow Growth 70 100 0.35 Moderate growth 90 150 0.10 High...
The probability distribution of percent returns for investing in a large-cap stock fund and investing in...
The probability distribution of percent returns for investing in a large-cap stock fund and investing in a long-term government bond fund. Probability f(x,y) Stock Fund (x) Bond Fund (y) .20 50 80 .50 30 50 .30 40 60 Compute the expected value, variance and standard deviation for x and y. Which fund is less risky? Explain.
Question 12 (5 points) 12. Compute the standard deviation of the expected return given these three...
Question 12 (5 points) 12. Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: Economic status Probability Return Fast growth 0.1 50% Slow growth 0.6 8% Recession -10 % 0.3 (just type the number of standard deviation (SD) without % and round up to second decimal places. For example, if your answer is 13.6789, enter 13.68) 6.2 AV Question 13 (5 points) panes 13. A company has a beta of...
o achieve a zero standard deviation for a portfolio, calculate the weights of stock A and...
o achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B, assuming the correlation coefficient is −1. Use the following information. (Round intermediate calculations to 4 decimal places, e.g. 31.2125 and the final answers to 2 decimal places, e.g. 31.21%.) State of the economy Probability of occurrence Expected return on stock A in this state Expected return on stock B in this state High growth 30% 42.5% 57.5% Moderate 25% 22.5% 27.5% Recession...
1. You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the following probability distribution: Р (Y) Probability of Annual Р (Х) Economic Stock X Stock Y Condition Returns Returns Return (X) (y) (P) Recession 0.1 -50 -100 Slow Growth 0.3 20 50 Moderate 0.4 100 130 Growth Fast Growth 0.2 200 150 xP(x) a. What is the expected return...
7) You are considering investing in the following stock X. State of the Economy Recession Below Average Average Above Average Boom Probability 10% 16% 51% 14% 9% Stock x Return - 75% -10% 15% 33% 82% a) Calculate the expected return of the stock. b) Calculate the standard deviation (riskiness) of returns for this stock. c) You are also looking into Stock Y which has the same expected return as Stock X, but a higher standard deviation. Which stock would...
Use the following information
to complete the question; compute the expected return, the variance
and standard deviation for the portfolio.
State of Econy Probability that Scale will crear n Retum in slock 1 Return on Ru stock a Recession 0.4 10% Boom 8.8% Expected Return Portfolio Weight 0.30
The correct formula for excel please!!
Following are four economic states, their likelihoods, and the potential returns. Economic State Fast growth Slow growth Recession Depression Probability 0.33 0.42 0.15 0.10 Return 56% 15% -12% -42% Compute the expected return and standard deviation. (Do not round intermediate calculations and round your answers to 2 decimal places.) Expected return Standard Deviation Sheet1 ... + DY
Question 12 (5 points) 12. Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: Economic status Probability Return Fast growth 0.1 50% Slow growth 0.6 8% Recession -10 % 0.3 (just type the number of standard deviation (SD) without % and round up to second decimal places. For example, if your answer is 13.6789, enter 13.68) 6.2 AV Question 13 (5 points) panes 13. A company has a beta of...
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