Question

cakes Corporation’s returns are either 14% half the time (probability of 0.5), or -3% the other...

cakes Corporation’s returns are either 14% half the time (probability of 0.5), or -3% the other half of the time. Calculate Chalet’s expected return, variance and standard deviation of returns.

Homework Answers

Answer #1

....

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The weighted average of returns anticipated over time is defined as the a. expected returns b....
The weighted average of returns anticipated over time is defined as the a. expected returns b. variance of returns c. standard deviation of returns d. rate of return
State Of Economy Probability Of State Returns   Stock Q Stock R Boom 10% 14%   16% Normal...
State Of Economy Probability Of State Returns   Stock Q Stock R Boom 10% 14%   16% Normal 90%   8% 11% 1. What is the expected return of Stock Q? What is the expected return of Stock R? 2. What is the Standard Deviation of Stock R? 3. What is the expected return of the portfolio if you invest $1,800 in Stock Q and $1,200 in Stock R? 4. What is the Standard Deviation of the Portfolio based on investing $1,800 in...
Given the following probability distribution, what are the expected return and the standard deviation of returns...
Given the following probability distribution, what are the expected return and the standard deviation of returns for Security J? State                      Pi                              rj     1                          0.5                           9%     2                          0.4                           8%     3                          0.1                           27%
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.    Returns Year X Y 1 6 %     23 %     2 24         44         3 13         -7         4 -14         -21         5 15         52             Calculate the arithmetic average return for X.     Calculate the arithmetic average return for Y.    Calculate the variance for X.     Calculate the variance for Y.   ...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for...
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.    Returns Year X Y 1 14 %     20 %     2 32         41         3 21         -13         4 -22         -27         5 23         49             Calculate the arithmetic average return for X.     Calculate the arithmetic average return for Y.    Calculate the variance for X.     Calculate the variance for Y.   ...
) You have estimated the following probability distributions of expected future returns for Stocks X and...
) You have estimated the following probability distributions of expected future returns for Stocks X and Y: Stock X Probability Return 0.5 -10 0.4 10 0.1 40 2a- What is the expected rate of return for Stock X? 2b- What is the standard deviation of expected returns for Stock X
Use the following probability distribution and returns to answer the next question What is the expected...
Use the following probability distribution and returns to answer the next question What is the expected return, variance, and the standard deviation for the stock? Prob Return of A 21% 6% 28% -29% 15% -15% 5% 12% 31% 11%
Stocks X and Y have the following probability distributions of expected future returns: Probability Stock X...
Stocks X and Y have the following probability distributions of expected future returns: Probability Stock X Stock Y 0.15 -5% -8% 0.35 7% 10% 0.30 15% 18% 0.20 10% 25% Expected return Standard deviation 6.42% Correlation between Stock X and Stock Y 0.8996 i. Calculate the expected return for each stock. ii. Calculate the standard deviation of returns for Stock Y. iii. You have $2,000. You decide to put $500 of your money in Stock X and the rest in...
Consider the following information on returns and probabilities: State Probability X Z Boom 30% 14% 11%...
Consider the following information on returns and probabilities: State Probability X Z Boom 30% 14% 11% Normal 55% 9% 8% Recession 15% 6% 11% (The portfolio has an investment of $5,500 in asset X and $4,500 in asset Z) A. What is the expected return for this portfolio? B. What is the standard deviation for this portfolio?
Investment will made to; Company A with probability 0.75 and in Company B with probability 0.25....
Investment will made to; Company A with probability 0.75 and in Company B with probability 0.25. The annual return from an investment in Company A is approximately normally distributed with mean 15% and standard deviation 4% whereas the annual return from an investment in Company B is approximately normally distributed with mean 10% and standard deviation 2%. Assume that the returns from Companies A and B are independent. (a) Probability of annual return being between 6% and 18%? (b Investment...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT