expected payoff of stock DEF is
= 0.2* 100 + 0.5 * 130 + 0.3 * 200
= 20+ 65+ 60
= $ 145
Question 4 (1 point) A stock DEF has the following payoffs probabilities: Probability 0.2 O.5 0.3...
Question 4 (1 point) A stock DEF has the following payoffs probabilities: Probability 0.2 0.5 0.3 Payoff $100 $130 $200 What is the Expected Payoff to the stock? Your Answer: Answer Question 5 (1 point) During a 3-months period, the price index increases from 120.8 to 121.5. During the same period, a stock increases in price for $100 to $110.5. What is the real rate of return for the stock for the 3 month period? Express your answer as a...
A stock DEF has the following payoffs probabilities:
Probability
0.3
0.45
0.25
Payoff
$50
$60
$90
What is the Variance of payoffs of the stock?
Note: The numbers for this question may have been changed from
the previous question.
Give your answer for Variance as a number and not a
percentage.
Your Answer:
Question 6 (1 point) Menger Corporation has a 0.3 probability of a return of -0.07, a 0.3 probability of a rate of return of 0.06, and the remaining probability of a 0.80 rate of return. What is the expected rate of return of Menger Corporation? Your Answer:
u Question 6 10 pts The following is a payoff table giving profits for various situations. Alternatives Alternative 1 Alternative 2 Alternative 3 Do Nothing States of Nature A B с 100 120 180 200 100 50 120 140 120 0 0 0 The probabilities for states of nature A, B, and Care 0.3, 0.5, and 0.2, respectively. What is the expected value with perfect information (EVwPI)? 0 130 O 160 O 166 O 36 O126
The following is a payoff table giving profits for various situations. States of Nature Alternatives 100 12 Alternative 1 10 20 lternative 2 12 140 120 Alternative 3 Do Nothing The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a perfect forecast of the future were available, what is the expected value with this perfect information? C) 154 A) 130 D) 36 B) 160
The following is a payoff table giving profits...
Probability Scores 0.2 3 0.05 4 0.05 7 0.1 8 0.2 9 0.1 10 0.3 12 Preview Find the expected value of the above random variable. Get help: Video Box 1: Enter your answer Enter DNE for Does Not Exist, as a number (like 5, -3, 2.2172) or as a calculation (like 5/3, 2/3, 5+4) oo for Infinity Probability Scores 0.25 0 0.15 9 0.3 11 0.1 13 0.2 14 Preview Find the expected value of the above random variable....
QUESTION 5 After extensive research, you believe the probability distribution for next year's return on FB Inc is: Return Probability -1.5% 0.2 20.2% 0.3 -6.3% 0.3 12.3% 0.2 Compute the standard deviation of this return. Express your answer as a percentage to three decimal places (the percent sign is not essential). That is, if you compute a standard deviation of 0.12345, enter your answer as 12.345.
A game of chance offers the following odds and payoffs. Each play of the game costs $200, so the net profit per play is the payoff less $200. Probability 0.30 0.60 0.10 Payoff $600 200 Net Profit $400 0 -200 a-1. What is the expected cash payoff? (Round your answer to the nearest whole dollar amount.) a-2. What is the expected rate of return? (Enter your answer as a percent rounded to the nearest whole number.) b-1. What is the...
Question 8 (0.2 points) Consider the following probability distribution of returns on stock XYZ. What is the expected return of stock XYZ? (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 8.43%, instead of 0.0843) Probability Return 0.20 -3% 0.40 12% 0.40 27% Your Answer: Answer units View hint for Question 8 Question 9 (0.2 points) Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of 1%...
Three decision makers have assessed payoffs for the following decision problem (payoff in dollars). Decision Alternative State of Nature s1 s2 s3 d1 15 40 –20 d2 60 80 –80 The indifference probabilities are as follows: Indifference Probability (p) Payoff Decision Maker A Decision Maker B Decision Maker C 80 Does not apply Does not apply Does not apply 60 0.7 0.95 0.85 40 0.5 0.9 0.7 15 0.3 0.8 0.55 –20 0.15 0.6 0.35 –80...