Question

The graph shows that the monthly return on Galifre Educational (GE) is expected to fall between...

The graph shows that the monthly return on Galifre Educational (GE) is expected to fall between -4.287% and 5.655%. The expected return on Galifre Educational (GE) is______ and the standard deviation is __________

How do you find the standard deviation? Please show work

Answers...

Expected return = .684%

Standard deviation = 1.657%

Homework Answers

Answer #1

Note : - the answer given for standard Deviation is wrong.

Expected Return = (- 4.287% + 5.655%) / 2

= 0.684%

Given Return X Expected Return X1 (X-X1)^2
-0.04287 0.00684 0.0024710841
0.05655 0.00684 0.0024710841
Total 0.0049421682

Standard Deviation = (0.0049421682 / 2)^1/2

= 4.971%

NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.

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
It is known that the expected monthly return of stock ABS is 2%. Also the monthly...
It is known that the expected monthly return of stock ABS is 2%. Also the monthly standard deviation is estimated to be 6%. You can assume that the monthly returns are normally distributed. a) compute the probability that any given months return will exceed 4% b) compute the probability that the average monthly return is any given year exceed 4% c) Design a 99% confidence interval for the monthly return of the stock. Also use the relevant graph to support...
Draw a graph that shows the expected (i.e., most common) relationship between housing prices and a...
Draw a graph that shows the expected (i.e., most common) relationship between housing prices and a valued environmental amenity. Make sure you label your graph. In words, describe the relationship that is illustrated in the graph.
Stock X has an expected return of 12% and the standard deviation of the expected return...
Stock X has an expected return of 12% and the standard deviation of the expected return is 20%. Stock Z has an expected return of 7% and the standard deviation of the expected return is 15%. The correlation between the returns of the two stocks is +0.3. These are the only two stocks in a hypothetical world. What is the expected return and the standard deviation of a portfolio consisting of 80% Stock X and 20% Stock Z? Will any...
Stock X has an expected return of 12% and the standard deviation of the expected return...
Stock X has an expected return of 12% and the standard deviation of the expected return is 20%. Stock Z has an expected return of 7% and the standard deviation of the expected return is 15%. The correlation between the returns of the two stocks is +0.3. These are the only two stocks in a hypothetical world. What is the expected return and the standard deviation of a portfolio consisting of 80% Stock X and 20% Stock Z? Will any...
Your current portfolio has a value of $60,000, with an expected return of 30%, and a...
Your current portfolio has a value of $60,000, with an expected return of 30%, and a standard deviation of 40%. You decide you want to purchase $12,000 of ABC, which has an expected return of 26%, a standard deviation of 60%, and is perfectly negatively correlated to your current portfolio. What will be your new portfolio’s standard deviation after the addition of ABC? please show how it is calculated
The domestic asset has an expected return of 9% and standard deviation of 25% The foreign...
The domestic asset has an expected return of 9% and standard deviation of 25% The foreign asset has an expected return of 15% and standard deviation of 35% The correlation between two asset is 0.40. Assuming the portfolio has 30% invested in the domestic asset and the reminder in the foreign asset.   1. calculate the portfolio's expected return and standard deviation. SHOW YOUR WORK rp=................% op=................%
Suppose that you have a stock with an average (expected) return of 32% and a standard...
Suppose that you have a stock with an average (expected) return of 32% and a standard deviation of return of 16%. Please answer the following question (show your work in your uploaded document): What is the probability of getting a return greater than 48%? (Round to 4 decimals, like .0000 or 00.00%)
Q13. Stocks offer an expected rate of return of 10% with a standard deviation of 20%,...
Q13. Stocks offer an expected rate of return of 10% with a standard deviation of 20%, and gold offers an expected return of 5% with a standard deviation of 25%. a. In light of the apparent inferiority of gold to stocks with respect to both mean return and volatility, would anyone hold gold? If so, demonstrate graphically why one would do so. b. How would you answer (a) if the correlation coefficient between gold and stocks were 1? Draw a...
Expected Return Standard Deviation          Stocks, S 14                          &nb
Expected Return Standard Deviation          Stocks, S 14                                           30           Bonds, B 6 15           The correlation between stocks and bonds is ρ(S,B) = 0.05 Note: I've entered the expected returns and standard deviations as whole numbers (not decimals)    Treat the risk-free rate as the number 2 not 0.02 or 2%. The risk-free rate is 2 percent. The CAL that is tangent to the portfolio frontier of stock and bonds has an expected return equal to 9.5 percent. You wish to...
The expected return of NW is 15% with a 10% standard deviation of return. The expected...
The expected return of NW is 15% with a 10% standard deviation of return. The expected return of SE is 8% with a 20% standard deviation of return. Draw the opportunity sets given below by hand on a sheet of paper, overlaying both opportunity sets on the same axes. The y-axis is expected return, and the x-axis is standard deviation. Upload a picture of your drawing. You do not need to be precise with your drawings; just be sure to...