Question

Based on the following information:    Rate of Return If State Occurs   State of Probability of...

Based on the following information:

  

Rate of Return If State Occurs
  State of Probability of
  Economy State of Economy Stock A Stock B
  Recession .17 .06 – .17
  Normal .50 .09 .12
  Boom .33 .14 .29

  

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
  Stock A %
  Stock B %

  

Calculate the standard deviation for the two stocks.
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 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 .10 .04 − .17   Normal .60 .09 .12   Boom .30 .17 .27    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 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 .10 .04 − .17   Normal .60 .09 .12   Boom .30 .17 .27    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 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...
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 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 .17 .08 ? .12 Normal .58 .11 .17 Boom .25 .16 .34 Calculate the expected return for each stock. (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 each stock. (Do not round intermediate calculations....
Consider the following information: Rate of Return if State Occurs State of Probability of State Economy...
Consider the following information: Rate of Return if State Occurs State of Probability of State Economy of Economy Stock A Stock B   Recession .23               .025          –.28            Normal .58               .105          .18            Boom .19               .170          .41          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) % Requirement 2: Calculate...
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 .25 .04 –.17   Normal .30 .10 .17   Boom .45 .15 .37 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)         Expected return for A %   Expected return for B % b. Calculate...
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 0.25 0.05 –0.11 Normal 0.55 0.12 0.16 Boom 0.20 0.16 0.36 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent...
Suppose you observe the following situation: State of Probability of Return if State Occurs Economy State...
Suppose you observe the following situation: State of Probability of Return if State Occurs Economy State Stock A Stock B Boom .18 ? .06 ? .07 Normal .73 .15 .16 Bust .09 .51 .32 a. Calculate the expected return on each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Stock A % Stock B % b. Assuming the capital asset pricing model holds and Stock A’s...
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 Stock C         Boom .15     .33     .45     .33             Good .55     .11     .10     .17             Poor .20     .02     .02     −.05             Bust .10     −.12     −.25     −.09     a. Your portfolio is invested 25 percent each in A and C and 50 percent in B. What is the expected...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT