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Integrative-Expected return, standard deviation, and coefficient of variation An asset is currently being considered by Perth...
P8-11 2 Integrative: Expected return, standard deviation, and coefficient of variation Three as- sets-F, G, and...
P8-11 2 Integrative: Expected return, standard deviation, and coefficient of variation Three as- sets-F, G, and H-are currently being considered by Perth Industries. The probability distributions of expected returns for these assets are shown in the following table. 5Y0n Asset F Asset G Asset H i Pr, Return, r Pr, Return, r Pr Return, 1 0.10 40% 0.40 35% 0.10 40% 0.20 0.20 10 0.30 10 20 0,40 0.30 -20 0.40 0 10 0.20 -5 0.20 0 0.10 -10 0.10...
QUESTION 28 The expected returns, standard deviation, and coefficient variation of Stocks A and B are...
QUESTION 28 The expected returns, standard deviation, and coefficient variation of Stocks A and B are given below. If you are risk adverse investor, which stock will you buy? | Stocks | Expected Return Std. Deviation Coefficient Variation, CV A 15% 4% 0.27 B 12% 3% 0.25 O Stock A since expected return is higher Stock B since standard deviation is lower O Stock A since coefficient variation is higher Stock B since coefficient variation is lower O Need additional...
Asset A has an expected return of 26% and a standard deviation of 18% Asset has...
Asset A has an expected return of 26% and a standard deviation of 18% Asset has an expected return of 22% and a standard deviation of 16%. What is the coefficient of variation for Asset A? carry to four decimal places
8.2 The coefficient of variation is a better measure of stand-alone risk than standard deviation because...
8.2
The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it is calculated as the -Select- divided by the expected return. The coefficient of variation shows the risk per unit of return, so it provides a more meaningful risk measure when the expected returns on two alternatives are not -Select- .. The Sharpe ratio compares the asset's realized excess return to its -Select- over a...
The expected value, standard deviation of returns, and coefficient of variation for asset A are ________....
The expected value, standard deviation of returns, and coefficient of variation for asset A are ________. (See table below.) Possible Outcomes Probability Returns (%) Pessimistic 0.25 5% Most Likely 0.55 10% Optimistic 0.20 13% 10 percent, 8 percent, and 1.25, respectively 9.35 percent, 2.76 percent, and 0.295, respectively 9.35 percent, 4.68 percent, and 2.00, respectively 9.33 percent, 8 percent, and 2.15, respectively
alk-Through Stock X has a 9.5 % expected return, a beta coefficient of 0.8, and a 30 % standard deviation of expecte...
alk-Through Stock X has a 9.5 % expected return, a beta coefficient of 0.8, and a 30 % standard deviation of expected returns. Stock Y has a 12.5 % expected return, a beta coefficient of 1.2, and a 25% standard deviation. The risk-free rate is 6 %, and the market risk premium is 5%. a. Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places. CV 3.16 CVy 2 b. Which stock...
Please provide the expected return and the standard deviation to the table above. Question 13 Susan...
Please provide the expected
return and the standard deviation to the table above.
Question 13 Susan is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Probability Return 0.1 25.00% Boom Good 0.1 15.00% Level 10.00% Slump 0.5 -5.00% Use the table of returns and probabilities above to determine...
e. What is the standard deviation of expected returns, so, for each portfolio? Portfolio AB: %...
e. What is the standard deviation of expected returns, so, for each portfolio? Portfolio AB: % (Round to two decimal places.) You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data: You have been told that you can create two portfolios —one consisting of assets A and B and the other consisting assets A and C-by investing equal proportions (50%) in each of the two component assets. a. What...
Stock X has a 9.5% expected return, - beta coefficient of 0.B, and a 40% standard...
Stock X has a 9.5% expected return, - beta coefficient of 0.B, and a 40% standard deviation of expected returns. Stock Y has a 13.0% expected return, a beta coefficient of 1.3, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. 2. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations. CVX = X CV = 2.4 D. Which stock is riskier for...
Find the (a) expected return, (b) standard deviation and (c) coefficient of variation for these investments...
Find the (a) expected return, (b) standard deviation and (c) coefficient of variation for these investments A and B. RA Prob. 20% 0.40 10% 0.3 -2% 0.30 A's expected return, standard deviation, and coefficient of variation are: 7%, 12.6%, 1.87 O 8%, 12.5%, 1.56 8%,1.6%, 0.2
P8-11 2 Integrative: Expected return, standard deviation, and coefficient of variation Three as- sets-F, G, and H-are currently being considered by Perth Industries. The probability distributions of expected returns for these assets are shown in the following table. 5Y0n Asset F Asset G Asset H i Pr, Return, r Pr, Return, r Pr Return, 1 0.10 40% 0.40 35% 0.10 40% 0.20 0.20 10 0.30 10 20 0,40 0.30 -20 0.40 0 10 0.20 -5 0.20 0 0.10 -10 0.10...
QUESTION 28 The expected returns, standard deviation, and coefficient variation of Stocks A and B are given below. If you are risk adverse investor, which stock will you buy? | Stocks | Expected Return Std. Deviation Coefficient Variation, CV A 15% 4% 0.27 B 12% 3% 0.25 O Stock A since expected return is higher Stock B since standard deviation is lower O Stock A since coefficient variation is higher Stock B since coefficient variation is lower O Need additional...
Asset A has an expected return of 26% and a standard deviation of 18% Asset has an expected return of 22% and a standard deviation of 16%. What is the coefficient of variation for Asset A? carry to four decimal places
8.2
The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it is calculated as the -Select- divided by the expected return. The coefficient of variation shows the risk per unit of return, so it provides a more meaningful risk measure when the expected returns on two alternatives are not -Select- .. The Sharpe ratio compares the asset's realized excess return to its -Select- over a...
alk-Through Stock X has a 9.5 % expected return, a beta coefficient of 0.8, and a 30 % standard deviation of expected returns. Stock Y has a 12.5 % expected return, a beta coefficient of 1.2, and a 25% standard deviation. The risk-free rate is 6 %, and the market risk premium is 5%. a. Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places. CV 3.16 CVy 2 b. Which stock...
Please provide the expected
return and the standard deviation to the table above.
Question 13 Susan is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Probability Return 0.1 25.00% Boom Good 0.1 15.00% Level 10.00% Slump 0.5 -5.00% Use the table of returns and probabilities above to determine...
e. What is the standard deviation of expected returns, so, for each portfolio? Portfolio AB: % (Round to two decimal places.) You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data: You have been told that you can create two portfolios —one consisting of assets A and B and the other consisting assets A and C-by investing equal proportions (50%) in each of the two component assets. a. What...
Stock X has a 9.5% expected return, - beta coefficient of 0.B, and a 40% standard deviation of expected returns. Stock Y has a 13.0% expected return, a beta coefficient of 1.3, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. 2. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations. CVX = X CV = 2.4 D. Which stock is riskier for...
Find the (a) expected return, (b) standard deviation and (c) coefficient of variation for these investments A and B. RA Prob. 20% 0.40 10% 0.3 -2% 0.30 A's expected return, standard deviation, and coefficient of variation are: 7%, 12.6%, 1.87 O 8%, 12.5%, 1.56 8%,1.6%, 0.2
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