Question

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 0.2 (32%) Below average 0.1 (9) Average 0.3 10 Above average 0.1 27 Strong 0.3 45 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 variation. Round your answer to two decimal places.

Answer #1

1. expected return=Respective return*Respective probability

=(0.2*-32)+(0.1*-9)+(0.3*10)+(0.1*27)+(0.3*45)=**11.9%**

**2.**

probability | Return | probability*(Return-Expected Return)^2 |

0.2 | -32 | 0.2*(-32-11.9)^2=385.442 |

0.1 | -9 | 0.1*(-9-11.9)^2=43.681 |

0.3 | 10 | 0.3*(10-11.9)^2=1.083 |

0.1 | 27 | 0.1*(27-11.9)^2=22.801 |

0.3 | 45 | 0.3*(45-11.9)^2=328.683 |

Total=781.69% |

**Standard deviation=[**Total of
probability*(Return-Expected Return)^2/Total probability]^(1/2)

=**27.96%(Approx)**

**Coefficient of variation=**Standard
deviation/Expected Return

=(27.96/11.9)=**2.35(Approx).**

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 -22% Below average 0.3 -14
Average 0.3 13 Above average 0.2 34 Strong 0.1 62 1.0 Calculate the
stock's expected return. Round your answer to two decimal places. %
Calculate the stock's standard deviation. Round your answer to two
decimal places. % Calculate the stock's coefficient of variation.
Round your answer to two decimal...

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
(44%)
Below average
0.2
(8)
Average
0.3
11
Above average
0.3
40
Strong
0.1
74
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 variation. Round...

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 0.2 (38%)
Below average 0.1 (15)
Average 0.3 13
Above average 0.1 37
Strong 0.3 51
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 variation. Round...

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
(24%)
Below average
0.3
(10)
Average
0.3
14
Above average
0.1
32
Strong
0.2
66
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...

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
0.2
(48%)
Below average
0.2
(8)
Average
0.3
17
Above average
0.2
28
Strong
0.1
71
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 variation. Round...

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
0.2
(38%)
Below average
0.1
(14)
Average
0.3
14
Above average
0.2
38
Strong
0.2
70
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 variation. Round...

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
(48%)
Below average
0.4
(7)
Average
0.3
14
Above average
0.1
32
Strong
0.1
46
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 variation. Round...

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
(32%)
Below average
0.2
(13)
Average
0.3
14
Above average
0.3
39
Strong
0.1
53
1.0
Assume the risk-free rate is 2%. 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...

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
(28%)
Below average
0.3
(9)
Average
0.3
12
Above average
0.2
28
Strong
0.1
67
1.0
a. Calculate the stock's expected return. Round your answer to
two decimal places.
b. Calculate the stock's standard deviation. Do not round
intermediate calculations. Round your answer to two decimal
places.
c. Calculate the stock's coefficient of variation....

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
0.2
(36%)
Below average
0.1
(7)
Average
0.3
18
Above average
0.2
27
Strong
0.2
48
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...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 12 minutes ago

asked 21 minutes ago

asked 21 minutes ago

asked 23 minutes ago

asked 24 minutes ago

asked 33 minutes ago

asked 50 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago