Stock has an average expected return of 10.15% and a standard deviation of 12.80%. The probability of losing more than 2.65% is closest to:
Stock has an average expected return of 10.15% and a standard deviation of 12.80%. The probability...
Question 6 10 points Save Answer Copy of Digitech's stock has an average expected return of 10.15% and a standard deviation of 12.80%. The probability of losing more than 2.65% is closest to: O A. 16% OB.68% O C.32%
An asset has an average return of 10.15 percent and a standard deviation of 19.05 percent. What range of returns should you expect to see with a 68 percent probability? A.−47.00% to 67.30% B −18.43% to 38.73% C −8.90% to 29.20% D −27.95% to 48.25% E −8.90% to 11.40%
Question 2: Given three securities: Expected Standard Return Deviation Stock 10.15 0.20 Stock 20.20 0.30 Stock 30.08 0.10 Stock 3 Correlation of Returns Stock 1 Stock 2 1.00 0.20 0.30 1.00 0.80 1.00 (a) Find the expected return and standard deviation of a portfolio with 25% in stock 1, 50% in stock 2, and 25% in stock 3. (b) For the portfolio in part (a), find the covariance of its return with the return of an equally weighted portfolio of...
Stock X has a 10.0% expected return, a beta coefficient of 0.9, and a 35% standard deviation of expected returns. Stock Y has a 12.0% expected return, a beta coefficient of 1.1, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations. CVx = CVy = Which stock is riskier for a diversified investor? For...
A more risky stock has a higher ________. expected return standard deviation variance standard deviation and variance
2a. Find the expected return and standard deviation of each stock Probability Return of Stock C Return of Stock D 0.30 - 10% 25% 0.50 15% 10% 0.20 40% 096 2b. Calculate the expected return and standard deviation of a portfolio made up of 50% stock C and 50% stock D if the correlation is -0.75. 2c. Would you prefer to put your money in stock C, stock Dor the 50/50 portfolio? Explain.
Stock A has an expected return of 7%, a
standard deviation of expected returns of 35%, a correlation
coefficient with the market of -0.3, and a beta coefficient of
-0.5. Stock B has an expected return of 12% a standard deviation of
returns of 10%, a 0.7 correlation with the market, and a beta
coefficient of 1.0. Which security is riskier? Why?
1. Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a...
A stock has an expected rate of return of 9.8 percent and a standard deviation of 15.4 percent. Which one of the following best describes the probability that this stock will lose at least half of its value in any one given year? O A. between 0.025 and 0.16 O B. less than 0.005 O C. between 0.005 and 0.025 O D.greater than 0.10
3. Calculate the probability-weighted expected return and standard deviation for the stock below State of the Economy Good Bad Ugly Probability 0.7 0.2 0.1 Expected Return on Stock 20% 5% -10%
Stock A has an expected return of 12% and a standard deviation of 3%. Stock B has an expected return of 15% and a standard deviation of 8%. Stock C has an expected return of 8% and a 2.5% standard deviation. Which of the following statements is most correct? A. We would prefer to invest in Stock B because it has the highest return. B. We would prefer to invest in stock C because it has the lowest risk. C....