Given the following probability distribution, what is the expected return of security J? (Expresss your answer in percentage and round it two decimal places, but do not include the percent sign, %, i.e., 4.65) State Pi rJ Bad 0.2 7% Neutual 0.6 14 Good 0.2 18
Expected return is the probability weighted return for the security.
Expected return E(R) = p1 * r1 + p2 * r2 + p3 * r3 + ..........
E(R) = 0.2 * 7% + 0.6 * 14% + 0.2 * 18%
E(R) = 1.4% + 8.4% + 3.6%
E(R) = 13.40%
Given the following probability distribution, what is the expected return of security J? (Expresss your answer...
Given the following probability distribution, what is the expected return of security J? (Expresss your answer in percentage and round it two decimal places, but do not include the percent sign, %, i.e., 4.65) State Probi rJ Bad 0.3 6% Neutual 0.3 14% Good 0.4 19%
Given the following probability distribution of security N's return, what is the standard deviation of the security? (Expresss your answer in percentage and round it two decimal places, but do not include the percent sign, %, i.e., 4.65) State Probi rn Bad 0.3 3% Neutual 0.4 9% Good 0.3 15%
Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15% 18% 0.4 9 7 0.3 20 11 Calculate the expected rate of return for the market. Round your answer to two decimal places. % Calculate the expected rate of return for Stock J. Round your answer to two decimal places. % Calculate the standard deviation for the market. Round your answer to two decimal places. % Calculate the standard deviation for...
1. What is the expected return on this stock given the following information? State of the Economy Probability E(R) Boom 0.4 14% Recession 0.6 -18% A) -8.07 percent B) -7.69 percent C) -6.80 percent D) -5.70 percent E) -5.20 percent
What is the expected return on a security given the above information State of Economy Rate of Return Recession Normal Boom Probability of State of Economy 0.14 0.75 0.11 0.18 0.11 -0.05 What is the expected return on a security given the above information? 10.22 percent 09.97 percent 9.43 percent O 8.78 percent
Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of this Company's Products Demand Occurring Weak 0.1 Below average Average 0.4 Above average 0.2 Strong Rate of Return if This Demand Occurs (%) -30% 0.2 30 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places. Expected return: Standard deviation:
You are given the following probability distribution of returns for stock J: A probability of .2 that the return will be 12%; a probability of .35 that the return will be 18%; a probability of .3 that the return will be -10%; and a probability of .15 that the return will be 10% What is the expected return of this stock?
Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy 0.2e 0.80 Roll -19% 18 Ross 19% 6 Calculate the expected returns for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round Intermediate calculations. Calculate the product using the decimal value of the probability and the percentage value of the return. Input all your answers as a percent rounded to 2 decimal...
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 25.8% 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.
Security Returns if State Occurs State of Probability of State Economy of Economy Bust 0.40 0.60 Roll -9% Ross 18% Boom 28 Calculate the expected returns for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Calculate the product using the decimal value of the probability and the percentage value of the return. Input all your answers as a percent rounded to 2 decimal places.)...