Question

Given the following information, what is the expected rate of
return and the standard deviation for this stock?

State of Economy | Probability of State of Economy | Rate of Return |

Boom |
0.3 |
0.23 |

Normal |
0.65 | 0.14 |

Recession |
0.05 |
-0.36 |

Answer #1

State of Economy | Probability (P) | RETURN (Y) | (P * Y ) | P * (Y -Average Return of Y)^2 |

Boom | 30% | 23 | 6.90 | 23.23 |

Normal | 65% | 14 | 9.10 | 0.03 |

Recession | 5% | -36 | -1.80 | 126.00 |

TOTAL | 14.20 | 149.26 | ||

Expected Return = | (P * Y) | |||

14.20% | ||||

VARIANCE = | P * (Y -Average Return of Y)^2 | |||

149.2600 | ||||

Standard Deviation = | Square root of (P * (Y -Average Return of Y)^2) | |||

Square root of 149.26 | ||||

12.22 |

Given the following information, what is the expected rate of
return and the standard deviation of a portfolio which is invested
30 percent in stock A, 20 percent in stock B, and 50 percent in
stock C?
State of Probability
of Rate
of Return if State
Occurs
Economy State
of Economy Stock
A Stock
B Stock
C
Boom .10
.22
.08
.18
..........................................Normal
.90 .08 .14 .07

Based on the following
information, calculate the expected return and standard deviation
and variance for two stocks:
This is what i have so
far and i am stuck if someone can check my work so far and help me
fill in the rest thanks
State of the Economy
Probability
Rate of Return Stock A
Rate of Return Stock B
Recession
.25
.05
-.19
Normal
.50
.06
.14
Boom
.25
.10
.34
Stock A
Probability
Return
Product
Return
Deviation
Squared
Deviation...

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 0.04 -0.23 Normal 0.70 0.08 0.14 Boom 0.10
0.14 0.35 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...

Based on the following information, calculate the expected
return and standard deviation for Stock A and Stock B:
State Of Economy
Prob of State
Stock A
Stock B
Recession
0.20
0.07
-0.05
Normal
0.45
0.09
0.12
Boom
0.35
0.17
0.27

Given the following information, what is the standard deviation
for this stock? State of Economy Probability Rate of Return
Recession 0.10 0.18 Normal 0.50 0.09 Boom 0.40 -0.08

Given the following information, what is the standard deviation
of stock A if it has an expected return of .27% in a boom economy,
an expected return of 18% in a good economy, and an expected return
of 3% in a recession? The probabilities of boom, normal, recession
are 0.2, 0.6, and 0.2, respectively.

Given the following information:
State of Economy
Probability
Rate of Return if State Occurs Stock G
Rate of Return if State Occurs Stock H
Boom
0.3
12%
25%
Normal
0.5
15%
10%
Recession
0.2
6%
-18%
Suppose you hold a portfolio with 60% invested in G and 40%
invested in H.
(1) What is the portfolio’s return if each state of the economy
occurs, respectively?
(2) What is the portfolio’s expected return?
(3) What is the portfolio’s standard deviation?

Given the following information:
State of Economy
Probability
Rate of Return if State Occurs Stock G
Rate of Return if State Occurs Stock H
Boom
0.3
12%
25%
Normal
0.5
15%
10%
Recession
0.6
6%
-18%
Suppose you hold a portfolio with 60% invested in G and 40%
invested in H.
(1) What is the portfolio’s return if each state of the economy
occurs, respectively?
(2) What is the portfolio’s expected return?
(3) What is the portfolio’s standard deviation?
Is...

What is the expected
return on this stock given the following information?
State of the
Economy
Probability
E(R)
Boom
0.4
15
%
Recession
0.6
-20
%
Multiple Choice
-8.07 percent
-6.00 percent
-5.20 percent
-5.70 percent
-7.69 percent
A portfolio consists
of the following securities. What is the portfolio weight of stock
A?
Stock
#Shares
PPS
A
200
$
48
B
100
$
33
C
250
$
21
Multiple Choice
0.389
0.451
0.336
0.529
0.445
What is the variance
of...

expected return and standard deviation. use the
following information to answer the questions.
state Econ, probability. AssetsA, AssetB,
AssetsC
Boom.
0.31.
0.05.
0.23. 0.33
Normal.
0.46.
0.05.
0.06.
0.19
Recession.
0.23.
0.05.
-0.03. -0.24
A) what is the expected return of each asset?
B) what is the variance of each asset?
C) what is the standard deviation of each asset?
hint: make sure to round all intermediate calculations
to at least seven decimal places. the input instructions, phases in
parenthesis...

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