What are the expected return and standard deviation of the possible returns below? Economy Probability Return...
What are the expected return and standard deviation of the
possible returns below?
| Economy | Probability | Return |
| Good | 0.60 | 25% |
| Bad | 0.40 | -15% |
Please show work and formulas used
Homework Answers
| Economy | INVESTMENT (P) | RETURN (Y) | (P * Y ) | P * (Y -Average Return of Y)^2 |
| Good | 60% | 25 | 15.00 | 153.60 |
| Bad | 40% | -15 | -6.00 | 230.40 |
| TOTAL | 9.00 | 384.00 | ||
| Expected Return = | (P * Y) | |||
| 9.00% | ||||
| VARIANCE = | P * (Y -Average Return of Y)^2 | |||
| 384.0000 | ||||
| Standard Deviation = | Square root of (P * (Y -Average Return of Y)^2) | |||
| Square root of 384 | ||||
| 19.60 |
Add Answer to:
What are the expected return and standard deviation of the
possible returns below?
Economy
Probability
Return...
3. Calculate the probability-weighted expected return and standard deviation for the stock below State of the...
3. Calculate the probability-weighted expected return and standard deviation for the stock below State of the Economy Good Bad Ugly Probability 0.7 0.2 0.1 Expected Return on Stock 20% 5% -10%
19. What is the cost of preferred stock for a firm with a $50 par value,...
19. What is the cost of preferred stock for a firm with a $50 par value, a 7% dividend rate, a share price of $58 and as flotation cost? (5) 16. What are the expected return and standard deviation of the possible returns below? (10) Economy Probability Return Good 0.60 25% Bad 0.40 -15% 17. What is the cost of common stock if its beta is 1.5 and market and risk-free returns are 11% and 2%, respectively? (5)
Given the following information, calculate the expected return and standard deviation for a portfolio that has...
Given the following information, calculate the expected return and standard deviation for a portfolio that has 35 percent invested in Stock A, 45 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Returns State of Probability of Economy State of Economy Boom 0.40 Bust 0.60 Stock A 15% 10 Stock B 18% Stock C 20% -10 Expected return Standard deviation
Security Returns if State Occurs Probability of State of Economy State of Roll Economy Ross 21...
Security Returns if State Occurs Probability of State of Economy State of Roll Economy Ross 21 8 0.40 Bust -108 0.60 8 28 Вoom Calculate the standard deviations 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. Round your answers to 4 decimal places.) Return Probability of State of Squared Return State of Deviation from Product Economy Expected Return Economy Deviation Roll 0.40 Bust...
Calculate the expected return and standard deviation for the following single stock: State of economy Probability...
Calculate the expected return and standard deviation for the following single stock: State of economy Probability of state of economy Return if state of economy occurs Recession .15 .02 Normal .25 .08 Boom .60 .12 The expected return and standard deviation, respectively, are: 9.8%, 2.95% 7.33%, 4.18% 9.50%, 3.57% 9.50%, 4.18% 7.33%, .1275%
Security Returns if State Occurs 10 points State of Economy Bust Boom Probability of State of...
Security Returns if State Occurs 10 points State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Roll -10% Ross 21% 28 Calculate the standard deviations 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. Round your answers to 4 decimal places.) eBook Print State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product References...
Returns and standard deviation- Consider the following information: State of economy Probability of state of economy...
Returns and standard deviation- Consider the following information: State of economy Probability of state of economy Rate of return if state occurs Stock A Stock B Stock C Boom .75 .07 .01 .27 Bust .25 .12 .19 -.05 a. What is the expected return on an equally weighted portfolio of these 3 stocks? b. What is the variance of a portfolio invested 20% in each in A and B and 60% in C?
Check my work View previous attempt Security Returns if State Occurs State of Economy Bust Boom Probability of State of...
Check my work View previous attempt Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Roll -101 28 Ross 21% points Calculate the volatility of a portfolio of 35 percent Rolland 65 percent Ross by filling in the following table: (Do not round intermediate calculations. Enter all answers, except the standard deviation, as decimals rounded to 5 decimal places. Enter the standard deviation as a percent rounded to 2 decimal places.) eBook...
Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage...
Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage returns Economic recession 25% 1% Steady economic growth 22% 9% Boom Please calculate it 17%
What is Stock XYZ's standard deviation of returns? State of the Economy Probability Recession 2096 Below...
What is Stock XYZ's standard deviation of returns? State of the Economy Probability Recession 2096 Below Average 4596 Average 35% Stock XYZ's Return -1096 1596 229 a. 11.65% b. Answer can not be found. c 12.450 d. 12.78 13.12
3. Calculate the probability-weighted expected return and standard deviation for the stock below State of the Economy Good Bad Ugly Probability 0.7 0.2 0.1 Expected Return on Stock 20% 5% -10%
19. What is the cost of preferred stock for a firm with a $50 par value, a 7% dividend rate, a share price of $58 and as flotation cost? (5) 16. What are the expected return and standard deviation of the possible returns below? (10) Economy Probability Return Good 0.60 25% Bad 0.40 -15% 17. What is the cost of common stock if its beta is 1.5 and market and risk-free returns are 11% and 2%, respectively? (5)
Given the following information, calculate the expected return and standard deviation for a portfolio that has 35 percent invested in Stock A, 45 percent in Stock B, and the balance in Stock C. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Returns State of Probability of Economy State of Economy Boom 0.40 Bust 0.60 Stock A 15% 10 Stock B 18% Stock C 20% -10 Expected return Standard deviation
Security Returns if State Occurs Probability of State of Economy State of Roll Economy Ross 21 8 0.40 Bust -108 0.60 8 28 Вoom Calculate the standard deviations 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. Round your answers to 4 decimal places.) Return Probability of State of Squared Return State of Deviation from Product Economy Expected Return Economy Deviation Roll 0.40 Bust...
Security Returns if State Occurs 10 points State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Roll -10% Ross 21% 28 Calculate the standard deviations 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. Round your answers to 4 decimal places.) eBook Print State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product References...
Check my work View previous attempt Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Roll -101 28 Ross 21% points Calculate the volatility of a portfolio of 35 percent Rolland 65 percent Ross by filling in the following table: (Do not round intermediate calculations. Enter all answers, except the standard deviation, as decimals rounded to 5 decimal places. Enter the standard deviation as a percent rounded to 2 decimal places.) eBook...
What is Stock XYZ's standard deviation of returns? State of the Economy Probability Recession 2096 Below Average 4596 Average 35% Stock XYZ's Return -1096 1596 229 a. 11.65% b. Answer can not be found. c 12.450 d. 12.78 13.12
Most questions answered within 3 hours.
-
1.
A hemophiliac male mates with a healthy female. what are the
possible genotypes for the...
asked 2 minutes ago -
After reading the Primary Care scenario in the Allied Health
Community, what could have been implemented...
asked 11 minutes ago -
Calculate the change in the Gibbs energy of the system for the
following processes: a) 6.0...
asked 6 minutes ago -
A solution is prepared by dissolving 11.60 g of a mixture of
sodium carbonate and sodium...
asked 15 minutes ago -
1. Mini Case Study: Suppose that, in the future, most jobs will
be bid upon by...
asked 17 minutes ago -
Plantinga argues for the view that there is no solution to the
problem of moral evil....
asked 13 minutes ago -
For this Discussion, you examine a case study of
hearing-impaired children who developed their own language...
asked 18 minutes ago -
At the beginning of the year, Palermo Brothers, Inc., purchased
a new plastic water bottle making...
asked 16 minutes ago -
You could argue that even though Rockefeller clearly had
enormous market power (90% of the market)...
asked 17 minutes ago -
The moment of inertia of a disk rotating about its axis of
symmetry is Icm=1/2MR^2
The...
asked 25 minutes ago -
When using a relational database what makes data
formatting so important and critical to the functions...
asked 35 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 55 minutes ago