Homework Answers
Expected Ret = Sum [ Prob * Ret ]
| Prob | Ret | Prob * Ret |
| 0.2 | 45% | 9.00% |
| 0.3 | 25% | 7.50% |
| 0.4 | 13% | 5.20% |
| 0.1 | 3% | 0.30% |
| Expected Ret | 22.00% | |
OPtion D is correct.
Add Answer to:
36. Calculate the expected return for the following distribution of returns. Probability Return 0.2 45% 0.3...
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of...
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (20%) Below average 0.1 (13) Average 0.4 16 Above average 0.3 38 Strong 0.1 53 1.0 Calculate the stock's expected return. Round your answer to two decimal places. % Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the stock's coefficient of...
Stocks X and Y have the following probability distributions of expected future returns: Probability 0.1 0.2...
Stocks X and Y have the following probability distributions of expected future returns: Probability 0.1 0.2 0.4 0.2 0.1 (10%) 2 12 20 48 (35%) 0 20 25 What are the expected returns of both X and Y? O 12% and 15% 13% and 14% 13% and 16% 13% and 15% 12% and 14%
8-1 EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability...
8-1 EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Occurs Weak 0.1 (30%) (14) 0.1 0.3 11 Below average Average Above average Strong 0.3 20 45 1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio.
Given the probability distribution below, calculate the expected rate of return for stock A and stock...
Given the probability distribution below, calculate the expected rate of return for stock A and stock B Rate of return (%) Probability Stock A Stock B 0.1 10 35 0.2 2 0 0.4 12 20 0.2 20 25 0.1 38 45 Stock A = 14%; Stock B = 21% Stock A = 23% ; Stock B = 12% Stock A = 25%; Stock B = 15% Stock A =31% ; Stock B = 27%
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of...
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of this Rate of Return If Demand Occurring This Demand Occurs 0.1 (26%) 0.3 (15) Weak 0.3 13 Below average Average Above average Strong 0.1 37 51 1.0 a. Calculate the stock's expected return. Round your answer to two decimal places. % lo b. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % c. Calculate the...
A stock's returns have the following distribution: Probability of this Rate of Return If Demand Occurring...
A stock's returns have the following distribution: Probability of this Rate of Return If Demand Occurring This Demand Occurs 0.2 Demand for the Company's Products Weak Below average Average Above average Strong 0.2 (8) 0.3 0.1 0.2 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round Intermediate calculations. Round your answers to two decimal places. Stock's expected return: Standard deviation: Coefficient of variation: Sharpe ratio:
Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability rM...
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...
Expected Return: Discrete Distribution - Calculate the stock's expected Return and standard deviation. eBook Expected Return:...
Expected Return: Discrete Distribution
- Calculate the stock's expected Return and standard deviation.
eBook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of This Rate of Return if This Demand Occurs (%) Company's Products Demand Occurring Weak 35 % 0.1 Below average 0.2 -7 0.4 8 Average Above average 0.2 25 0.1 60 Strong 1.0 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two...
8-6 EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns:...
8-6 EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability B 0.1 0.2 A (10%) 2 12 20 38 (35%) 0 20 0.4 0.2 0.1 45 a. Calculate the expected rate of return, fe, for Stock B (f = 12%). b. Calculate the standard deviation of expected returns, o , for Stock A (o, = 20.35%). Now calculate the coefficient of variation for Stock B. Is it possible that most investors will regard...
Maniz Berhad is considering investing RM10,000. The following information is the probability distribution of returns for...
Maniz Berhad is considering investing RM10,000. The following information is the probability distribution of returns for Kuih Ketayap and Kuih Lapis. Probability Rate of returns (%) Project Kuih Ketayap Kuih Lapis -25 -10 2 18 14 0.1 0.2 0.4 0.3 40 19 From the above information you are required to: a. calculate the expected rate of return of each project. (4 Marks) b. assume that Maniz Berhad will be investing RM6,000 in Kuih Lapis project and RM4,000 in Kuih Ketayap...
Stocks X and Y have the following probability distributions of expected future returns: Probability 0.1 0.2 0.4 0.2 0.1 (10%) 2 12 20 48 (35%) 0 20 25 What are the expected returns of both X and Y? O 12% and 15% 13% and 14% 13% and 16% 13% and 15% 12% and 14%
8-1 EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Occurs Weak 0.1 (30%) (14) 0.1 0.3 11 Below average Average Above average Strong 0.3 20 45 1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio.
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of this Rate of Return If Demand Occurring This Demand Occurs 0.1 (26%) 0.3 (15) Weak 0.3 13 Below average Average Above average Strong 0.1 37 51 1.0 a. Calculate the stock's expected return. Round your answer to two decimal places. % lo b. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % c. Calculate the...
A stock's returns have the following distribution: Probability of this Rate of Return If Demand Occurring This Demand Occurs 0.2 Demand for the Company's Products Weak Below average Average Above average Strong 0.2 (8) 0.3 0.1 0.2 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round Intermediate calculations. Round your answers to two decimal places. Stock's expected return: Standard deviation: Coefficient of variation: Sharpe ratio:
Expected Return: Discrete Distribution
- Calculate the stock's expected Return and standard deviation.
eBook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of This Rate of Return if This Demand Occurs (%) Company's Products Demand Occurring Weak 35 % 0.1 Below average 0.2 -7 0.4 8 Average Above average 0.2 25 0.1 60 Strong 1.0 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two...
8-6 EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability B 0.1 0.2 A (10%) 2 12 20 38 (35%) 0 20 0.4 0.2 0.1 45 a. Calculate the expected rate of return, fe, for Stock B (f = 12%). b. Calculate the standard deviation of expected returns, o , for Stock A (o, = 20.35%). Now calculate the coefficient of variation for Stock B. Is it possible that most investors will regard...
Maniz Berhad is considering investing RM10,000. The following information is the probability distribution of returns for Kuih Ketayap and Kuih Lapis. Probability Rate of returns (%) Project Kuih Ketayap Kuih Lapis -25 -10 2 18 14 0.1 0.2 0.4 0.3 40 19 From the above information you are required to: a. calculate the expected rate of return of each project. (4 Marks) b. assume that Maniz Berhad will be investing RM6,000 in Kuih Lapis project and RM4,000 in Kuih Ketayap...
Most questions answered within 3 hours.
-
On October 1, 20X1, a company purchased a piece of land by
agreeing to pay the...
asked 7 minutes ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 12 minutes ago -
What are the roles of 3' and 5' untranslated regions in
mRNAs?
asked 13 minutes ago -
A domestic television receives antenna delivers a sky noise
power of -105 dBm to a matched...
asked 12 minutes ago -
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 27 minutes ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 34 minutes ago -
The average area of land burned by forest fires every year in
Canada is 2.5 million...
asked 36 minutes ago -
36. The basic difference between government bureaus and market
firms is that bureaus:
a. can...
asked 36 minutes ago -
java
- A recursive method findR() to search for a number in list
(ArrayList)
- A...
asked 54 minutes ago -
Which of the following is an example of a screen against adverse
selection? [Mark All That...
asked 53 minutes ago -
A worker drives a 0.560 kg spike into a rail tie with a 2.76 kg
sledgehammer....
asked 59 minutes ago -
Assume the following information concerning two stocks that make
up an index. What is the price-weighted...
asked 1 hour ago