Question

You recently purchased a stock that is expected to earn 19 percent in a booming economy,...

You recently purchased a stock that is expected to earn 19 percent in a booming economy, 8 percent in a normal economy, and lose 28 percent in a recessionary economy. There is a 20 percent probability of a boom and a 70 percent chance of a normal economy. What is standard deviation on this stock?

Homework Answers

Answer #1

If you have any doubts, please post a comment.

Thank you.Please rate it.

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
You recently purchased a stock that is expected to earn 19 percent in a booming economy,...
You recently purchased a stock that is expected to earn 19 percent in a booming economy, 8 percent in a normal economy, and lose 28 percent in a recessionary economy. There is a 20 percent probability of a boom and a 70 percent chance of a normal economy. What is standard deviation on this stock? show the answer in detail.
You recently purchased a stock that is expected to earn 20 percent in a booming economy,...
You recently purchased a stock that is expected to earn 20 percent in a booming economy, 10 percent in a normal economy, and lose 30 percent in a recessionary economy. There is a 5 percent probability of a boom and an 80 percent chance of a normal economy. What is the expected rate of return and standard deviation on this stock?
You recently purchased a stock that is expected to earn 33 percent in a booming economy,...
You recently purchased a stock that is expected to earn 33 percent in a booming economy, 13 percent in a normal economy, and lose 40 percent in a recessionary economy. There is a 15 percent probability of a boom and a 60 percent chance of a normal economy. What is standard deviation on this stock?
You recently purchased a stock that is expected to earn 19 percent in a booming economy,...
You recently purchased a stock that is expected to earn 19 percent in a booming economy, 12 percent in a normal economy, and lose 8 percent in a recessionary economy. The probability of a boom economy is 16 percent while the probability of a normal economy is 78 percent. What is your expected rate of return on this stock? Group of answer choices 12.54 percent 12.40 percent 10.25 percent 11.92 percent 13.50 percent
You recently purchased a stock that is expected to earn 25 percent in a booming economy,...
You recently purchased a stock that is expected to earn 25 percent in a booming economy, 10 percent in a normal economy, and lose 38 percent in a recessionary economy. There is a 10 percent probability of a boom and a 75 percent chance of a normal economy. What is your expected rate of return on this stock?
You recently purchased a stock that is expected to earn 17 percent in a booming economy,...
You recently purchased a stock that is expected to earn 17 percent in a booming economy, 12 percent in a normal economy, and lose 5 percent in a recessionary economy. There is 17 percent probability of a boom, 66 percent chance of a normal economy, and 17 percent chance of a recession. What is your expected rate of return on this stock? 8.00% 4.17% 9.96% 4.98% 9.67%
Assume that the economy has an 30% chance of booming, a 30% chance of being normal,...
Assume that the economy has an 30% chance of booming, a 30% chance of being normal, and being recessionary the remainder of the time. A stock is expected to return 24.76% in a boom economy, 16.88% in a normal economy, and -14.50% in a recession economy. What is the standard deviation of returns on the stock?
KNF stock is quite cyclical. In a boom economy, the stock is expected to return 34...
KNF stock is quite cyclical. In a boom economy, the stock is expected to return 34 percent in comparison to 13 percent in a normal economy and a negative 22 percent in a recessionary period. The probability of a recession is 15 percent while the chance of a boom is 4 percent. What is the standard deviation of the returns this stock?
The common stock of Steve & Rob is expected to earn 38 percent in a boom...
The common stock of Steve & Rob is expected to earn 38 percent in a boom economy, 9 percent in a normal economy, and lose 20 percent in a recession. The probability of a recession is 25 percent while the probability of a boom economy is 45 percent. What is the expected rate of return on this stock? Hint: First find the probability of normal economy. Only Enter the Final Answer in Decimals. Select one of the following: 0.136 0.054...
. Stock S is expected to return 12 percent in a boom and 6 percent in...
. Stock S is expected to return 12 percent in a boom and 6 percent in a normal economy. Stock T is expected to return 20 percent in a boom and 4 percent in a normal economy. There is a probability of 40 percent that the economy will boom; otherwise, it will be normal. What is the portfolio variance and standard deviation if 30 percent of the portfolio is invested in Stock S and 70 percent is invested in Stock...