Question

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%

Homework Answers

Answer #1

Ans Expected Return:   -5.10%

Variance: 295.4900

Standard Deviation: 17.19

Calculation is as follows:

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
Use the following probability distribution to answer the next 2 questions:                         Prob     
Use the following probability distribution to answer the next 2 questions:                         Prob                Return of A                             .1                          6%                                     .3                        -25%                                    .35                       18%                                     .25                       8%             What is the standard deviation of stock A’s returns?
What is the expected return, variance, and the standard deviation for the stock? Prob Return of...
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% A. 5.5% 2.15%, and 15.2% B. 5.1% , 2.95%, and 15.40% C. 4.10% 3.95%, and 16.80% D. -5.10%, 2.95%, and 17.19%
Problem 6-06 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions:...
Problem 6-06 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability rM rJ 0.3 12% 21% 0.4 9 3 0.3 20 11 Calculate the expected rate of return for the market. Round your answer to two decimal places. % Calculate the expected rate of return for Stock J. Round your answer to two decimal places. %
Problem 6-06 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions:...
Problem 6-06 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15% 21% 0.4 8 3 0.3 18 13 Calculate the expected rate of return for the market. Round your answer to two decimal places. % Calculate the expected rate of return for Stock J. Round your answer to two decimal places. % Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (5%) (27%) 0.2 4 0 0.3 11 19 0.2 18 29 0.2 33 48 Calculate the expected rate of return, rB, for Stock B (rA = 13.80%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, ?A, for Stock A (?B = 21.72%.) Do not round intermediate calculations. Round your...
question 1 Given the following probability distribution, calculate the expected return. (express you answer as a...
question 1 Given the following probability distribution, calculate the expected return. (express you answer as a percentage. Do not use the % symbol) Probability     Outcome 30% 0% 40%               10% 30%               30% Question 2 Given the following probability distribution, calculate the standard deviation. Probability     Outcome 40%               -5% 40%               10% 20%               30% 18.79% 35.00% 12.88% 12.22% Question 3 Given the following probability distribution, calculate the expected return. Probability     Outcome 20%               5% 40%               10% 20%               15% 20%               20% 18.75% 50.25% 12.5% 12.0%
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (12%) (20%) 0.2 6 0 0.4 16 19 0.2 21 25 0.1 34 41 Calculate the expected rate of return, rB, for Stock B (rA = 14.00%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, ?A, for Stock A (?B = 16.17%.) Do not round intermediate calculations. Round your...
Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price...
Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR $38 55% 25% $25 $29 0% 50% $22 -25% 25% What is the expected return for Alpha Corporation? What is the variance of the return on Alpha Corporation? What is the standard deviation of the return on Alpha Corporation? pls no excel sheets
Use the following information to answer the next three questions Scenario Probability Return on Value Stock...
Use the following information to answer the next three questions Scenario Probability Return on Value Stock Fund Return on Income Stock Fund Recession 0.25 -14% -12% Normal Growth 0.25 17% 6% Boom 0.50 33% 5% Expected Return 1.00% Standard Deviation 7.52% What is the expected return on Value Stock Funds? 16.25% 15.45% 17.25% -18.25% What is the standard deviation of Value Stock Funds? 14.25% 19.19% 16.19% 22.25% What is the expected return if you invested 80% in value stock funds...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (7%) (28%) 0.3 2 0 0.3 12 18 0.2 20 25 0.1 39 37 Calculate the expected rate of return, rB, for Stock B (rA = 11.40%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 17.60%.) Do not round intermediate calculations. Round your...