Consider the following information:
Probability of State | Rate of Return if State Occurs | ||||||||||
Economy | of Economy | Stock A | Stock B | ||||||||
Recession | .21 | .015 | – | .26 | |||||||
Normal | .56 | .095 | .16 | ||||||||
Boom | .23 | .150 | .39 | ||||||||
a. Calculate the expected return for the two
stocks.
Expected return | ||
E(RA) | % | |
E(RB) | % | |
b. Calculate the standard deviation for the two
stocks.
Standard deviation | ||
σA | % | |
σB | % | |
Consider the following information: Probability of State Rate of Return if State Occurs Economy of...
Consider the following information: Probability of State of Economy Rate of Return of State Occurs Stock A Stock B 23 050 -43 Economy Recession Normal Boom 130 320 56 a. Calculate the expected return for the two stocks. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round Intermediate calculations and enter your answers as a percent rounded to...
Consider the following information: Economy Economy Rate of Return If State Occurs State of Probability of - State of Stock A Stock B Recession 20 .05 - 20 Normal 57 Boom 23 26 08 .09 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and...
M UOLIUS [LU Consider the following information: Rate of Return if State Occurs SU Probability of State of Economy .20 Stock A State of Economy Recession Normal Boom Stock B .035 -40 .60 20 115 .290 .30 53 Requirement 1: Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return E(RA) E(RB) % Prev 1 of 3 Next > Boom 20 .290...
Consider the following information: STOCK D Economy Recession Normal Boom Probability of State of Economy .23 .63 .14 Rate of Return if State Occurs Stock A Stock B .050 -.43 .130 .33 .320 .56 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return E(RA) E(RB) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations...
Consider the following information: Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .15 .06 −.10 Normal .56 .09 .19 Boom .29 .14 .36 Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Stock A % Stock B % Calculate the standard deviation for the two stocks. (Do not round intermediate...
Consider the following information: Rate of Return if State Occurs Probability of State of Economy Stock A Stock B State of Economy Recession Normal Boom .02 .15 .50 -30 .18 .35 .10 .15 .31 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers...
Consider the following information: Probability of Rate of Return if State Occurs State of Economy Stock A Stock B .20 .010 090 .25 .240 48 Economy Recession Normal Boom -35 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded...
Consider the following information: Economy Rate of Return if State Occurs State of Probability of State of Stock A Stock B Recession 10 .04 - 17 Normal .60 .09 Boom 30 27 Economy .12 .17 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and...
Consider the following information: Probability of Rate of Return if State Occurs State of Economy Economy Recession Stock A Stock B -35 25 20 010 Normal 55 090 Boom 25 240 48 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a...
Consider the following information: Rate of Return If State Occurs Probability of State of State of Stock A Economy Stock B Economy -.20 Recession 20 05 Normal 57 08 09 Вoom .23 13 26 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter...