Question

Consider the following information: Rate of Return If State Occurs State of Probability of Economy State...

Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 0.16 0.05 − 0.16 Normal 0.62 0.08 0.13 Boom 0.22 0.13 0.30 Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16)) Expected return Stock A % Stock B % Calculate the standard deviation for the two stocks.

I know that Expected Return for Stock A is 8.62% , Expected Return for Stock B is 12.1% and Standard Deviation for Stock A is 2.56%, but I keep getting Stock B standard deviation wrong. Please Help.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following information:    Rate of Return if State Occurs   State of Economy Probability of...
Consider the following information:    Rate of Return if State Occurs   State of Economy Probability of State of Economy Stock A Stock B   Recession 0.10 0.06 -0.18   Normal 0.60 0.08 0.16   Boom 0.30 0.16 0.35    Required:    Given that the expected return for Stock A is 10.200%, calculate the standard deviation for Stock A. (Do not round your intermediate calculations.)
Consider the following information:     Rate of Return if State Occurs   State of Economy Probability of...
Consider the following information:     Rate of Return if State Occurs   State of Economy Probability of State of Economy Stock A Stock B   Recession 0.10 0.03 -0.21   Normal 0.60 0.08 0.15   Boom 0.30 0.13 0.32     Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.)     (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.)     (c) Calculate the standard deviation for Stock A. (Do not round your intermediate...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.30 0.23 0.31 0.30 Good 0.15 0.16 0.11 0.12 Poor 0.30 0.02 –0.08 –0.07 Bust 0.25 –0.22 –0.24 –0.13 a. Your portfolio is invested 25 percent each in A and C and 50 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.02 -0.17 Normal 0.60 0.08 0.12 Boom 0.20 0.16 0.35 Required: Given that the expected return for Stock A is 8.400%, calculate the standard deviation for Stock A. (Do not round your intermediate calculations.)
Consider the following information:    Rate of Return if State Occurs   State of Economy Probability of...
Consider the following information:    Rate of Return if State Occurs   State of Economy Probability of State of Economy Stock A Stock B   Recession 0.10 0.05 -0.22   Normal 0.60 0.09 0.13   Boom 0.30 0.13 0.33 Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) (Click to select)9.80%8.52%11.54%10.70%8.94%    (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (Click to select)15.50%8.00%17.28%14.73%16.12%    (c) Calculate the standard deviation for Stock A....
Consider the following information:     Rate of Return if State Occurs   State of Economy Probability of...
Consider the following information:     Rate of Return if State Occurs   State of Economy Probability of State of Economy Stock A Stock B   Recession 0.20 0.05 -0.22   Normal 0.50 0.09 0.16   Boom 0.30 0.15 0.33 (c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) A) 3.61% B) 2.55% C) 3.79% D) 3.43% E) 3.75%     (d) Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.) A) 19.22% B) 13.59% C) 21.18%...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.10 0.03 -0.22 Normal 0.60 0.07 0.11 Boom 0.30 0.12 0.34 Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) (d) Calculate the...
Consider the following information:    Rate of Return If State Occurs   State of Probability of   Economy...
Consider the following information:    Rate of Return If State Occurs   State of Probability of   Economy State of Economy Stock A Stock B   Recession .20 .08 − .15   Normal .50 .11 .14   Boom .30 .16 .31    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...
Consider the following information:    Rate of Return if State Occurs   State of Economy Probability of...
Consider the following information:    Rate of Return if State Occurs   State of Economy Probability of State of Economy Stock A Stock B   Recession 0.10 0.03 -0.18   Normal 0.50 0.08 0.16   Boom 0.40 0.13 0.31 Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) (Click to select)9.50%7.52%11.22%9.70%8.63%    (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (Click to select)18.60%9.67%20.53%17.67%19.34%    (c) Calculate the standard deviation for Stock A....
Consider the following information: Rate of Return If State Occurs State of Economy Probability of State...
Consider the following information: Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .18 .07 −.18 Normal .55 .10 .11 Boom .27 .15 .28 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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT