ZuoTi.Pro
Question

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

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
A stock will have a loss of 12.1 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.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 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

  • 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?

  • If the economy is normal, Stock A is expected to return 11.00%. If the economy falls...

    If the economy is normal, Stock A is expected to return 11.00%. If the economy falls into a recession, the stock's return is projected at a negative 14%. If the economy is in a boom the stock has a projected return of 20.0% 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...

  • 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...

  • 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, 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%

  • Check There is 6 percent probability of recession, 21 percent probability of a poor economy, 47...

    Check There is 6 percent probability of recession, 21 percent probability of a poor economy, 47 percent probability of a normal economy, and 26 percent probability of a boom. A stock has returns of -20.8 percent, 4.4 percent, 12.2 percent and 27.9 percent in these states of the economy, respectively. What is the stock's expected return? points

  • 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, 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

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
Active Questions
ADVERTISEMENT