Question

State of   Economy Probability of   State of Economy         Roll        Ross   Bust .30 –12 % 16 %...

State of
  Economy		 Probability of
  State of Economy
        Roll        Ross
  Bust .30 –12 % 16 %
  Boom .70 23 6

Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as decimals): (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your Standard deviation answers to 2 decimal places and other answers to 4 decimal places. Omit the "%" sign in your response.)
State of
Economy		    Probability of
  State of Economy		    Return Deviation
  from Expected Return		     Squared Return
Deviation		      Product
  Roll
    Bust .30           
    Boom .70           
   
σ2 =   
   
  Ross
    Bust .30           
    Boom .70           
   
σ2 =   
   
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
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.60 –14 % 15 % Boom 0.40 32 5 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.) State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.50 –19 % 12 % Boom 0.50 19 5 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.) (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) (Do not round...
State of Economy Probability of State of Economy Roll Ross Bust .40 −10 % 21 %...
State of Economy Probability of State of Economy Roll Ross Bust .40 −10 % 21 % Boom .60 28 8 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.) (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust .40 −10 % 21 % Boom .60 28 8 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.) (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.40 −16 % 17 % Boom 0.60 16 7 Calculate the expected return on a portfolio of 65 percent Roll and 35 percent Ross by filling in the following table:(A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) State of Economy Probability of State of Economy Portfolio...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust .60 −15 % 15 % Boom .40 32 5 Calculate the expected returns 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. Calculate the product using the decimal value of the probability and the percentage value of the return. Input all your answers as a percent rounded to...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.20 −13 % 17 % Boom 0.80 24 6 Calculate the expected return on a portfolio of 60 percent Roll and 40 percent Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.40 −10 % 21 % Boom 0.60 28 8    Calculate the volatility of a portfolio of 35 percent Roll and 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.)
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...
Let’s consider the probabilities of state of economy are unequal for Stock L and Stock U....
Let’s consider the probabilities of state of economy are unequal for Stock L and Stock U. Recalculate variances and standard deviations of Stock L and Stock U. Stock L (1) State of Economy (2) Probability of State of Economy (3) Rate of Return if State Occurs (4) Expected Return = sum of (2) × (3) (5) Deviation from expected return = (3) – E(R) (6) Squared Deviation from expected return = (5) × (5) (7) Expected Variance = sum of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT