State of Economy | Probability of Economy(X) | Stock |
recession | 0.05 | 25.00% |
normal | 0.5 | 15.00% |
boom | 0.45 | 5% |
Expected return E(X)=sum of(x*P(X)) |
11.00% | |
E(X^2) | 0.0155 | |
Variance=E(X^2)-E(X)^2 |
0.0034 | |
Standard deviation=sqrt(Variance) |
5.83% | |
coefficient of variantion = std/expected return |
0.53 |
6. Roenfeld Corp believes the following probability distribution exists for its stock. What: the coefficient of...
Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Do not round your intermediate calculations. State of Probability Stock's the of State Expected Economy Occurring Return Boom 0.14 25% Normal 0.50 15% Recession 0.36 5%
Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Do not round your intermediate calculations. Probability Stock's of State Expected the Economy Occurring Return 0.14 Boom Normal Recession 0.50 0.36 0.5775 0.4725 0.4463 5513
Question 3 Roenfeld Corp. believes the following probability distribution exists for its stock. What is the expected return of the company's stock? State of the Economy Probability. Return Expected Boom 0.35 25% Normal 0.40 15% Recession 0.25 13% 17% 15% 14% 16%
Kia Corp. believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? ( the stock variance of 48.509). Economy, Probability, Expected return Boom 0.19 25% Normal 0.50 15% Recession 0.31 5%
Problem 1 FIN300 Corp. believes the following probability distribution exists for its stock. What is the expected return and the standard deviation of the company's stock? State of the Econom Boom Normal Recession Probability of State Occurrin 0.30 0.50 0.20 Stock's Expected Return 25% 15% -5%
You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock? Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 30.00% 19.55% Normal 51.00% 16.35% Recession 19.00% 9.50%
An analyst has determined that a particular stock's return will vary depending on what will happen to the economy. Utilizing the information below, what is the coefficient of variation of the company's stock? STATE OF THE ECONOMY PROBABILITY OF STATE OCCURRING STOCKS EXPECTED RETURN IF THIS STATE OCCURS Recession .10 (35) Below Average .20 (20) Average .40 15 Above Average .20 40 Boom .10 90
An analyst has determined that a particular stock's return will vary depending on what will happen to the economy. Utilizing the information below, what is the coefficient of variation of the company's stock? STATE OF THE ECONOMY PROBABILITY OF STATE OCCURRING STOCKS EXPECTED RETURN IF THIS STATE OCCURS Recession .10 (35) Below Average .20 (20) Average .40 15 Above Average .20 40 Boom .10 90
3. Profit corp. analysts estimated the following probability distributions for its stocks. What is their expected rate of return? State of Economy Stock return Prob. of state occurring Recession Normal Boom -5% 5% 15% 4. Turner corp. stocks had a required rate of return of 8%. Risk free rate was 3% and market risk premium was 6%. Analysts are expecting an increase in investor risk aversion increasing market risk premium by 2%. What will be the firm's new required rate...
Expected Return, Variance, Std. Deviation and Cofficient of Variation: Magee Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns? Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy...