Suppose your expectations regarding the stock market are as follows: Probability HP State of the Economy...
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.4 43% Normal growth 0.5 23 Recession 0.1 -16 compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.3 Normal growth 0.3 Recession 0.4 HPR 39% 21 -18 E(-) = P(G)() Var(-) = 92 = Š PO[r®) – E("P SD(Y) = g = V Var(r) Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mean Standard deviation
Suppose your expectations regarding the stock market are as follows: 0.2 State of the Economy Probability Boom Normal growth 0.6 Recession 0.2 HPR 42% 23 -17 E(= Ś PCD76) Var(y) = y2 = È PO[r(s) – E()P SD(r) = q = V Var(r) Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mean Standard deviation
Problem 5-5 Suppose your expectations regarding the stock market are as follows: Probability State of the Economy Boom Normal growth Recession HPR 40% 20 E(A) = PODMG Var() = 02 - PD[C) – EMPA SD() = 0 = Var (7) Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not found intermediate calculation 1 of 5 ili Next > ere to search hin E() = Š P60576) Var(t) = 02 - P()[76) –...
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.3 42% Normal growth 0.4 15 Recession 0.3 -18 What is the mean? What is the Standard Deviation?
Suppose your expectations regarding the stock market are as follows:State of the EconomyProbabilityHPRBoom0.441%Normal growth0.415Recession0.2-19Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)Mean%Standard deviation%
2. Suppose your expectations regarding the stock price are as follows: State of the Market Boom Normal growth Recession HPR (including dividends) 45.590 12.0 21.0 Probability Ending Price 0.27 0.21 0.52 $140 110 80 Compute the mean and standard deviation of the HPR on stocks. (Omit the % sign in your response. Do not round intermediate calculations. Enter your answers as decimals rounded to 2 places.)
Saved Problem 5-6 The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Boom Normal economy Recession Dividend Stock Price $2.80 $48 1.80 43 0.90 a. Calculate the expected holding-period return and standard deviation of the holding period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected...
The stock of Business Adventures sells for $50 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows Dividend $3.00 Stock Price $58 Boom Normal economy 1.40 52 Recession e.7e 43 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return % Standard...
The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price $48 Boom Normal economy Recession $2.80 1.80 0.90 43 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return Standard deviation b....