Question

1. Your investment has a 30% chance of earning a 11% rate of return, a 40% chance of earning a 16% rate of return and a 30% chance of earning -4%. What is the standard deviation on this investment? (Put your answers in decimal points instead of percentage)

2. You calculated that the average return of your portfolio is 5% and the standard deviation is 21%, what is the value at risk (VaR) at 5% for your portfolio?

Answer #1

I'm uploading two screenshots so that you can have a look at both the formulae.

You anticipate that an investment has a 30% chance of earning a
20% return, a 40% chance of earning a 5% return, and a 30% chance
of earning 12%. What is the standard deviation of this
investment? Answer in percent form to two
decimal places.

Calculate standard deviation
Your investment has a 40% chance of earning a 15% rate of
return, a 50% chance of earning a 10% rate of return, and a 10%
chance of losing 3%. What is the standard deviation of this
investment?
A.
8.43%
B.
5.14%
C.
9.29%
D.
7.59%
Expected return and volatility of a portfolio
An investor invests 70% of her wealth in a risky asset with an
expected rate of return of 15% and a variance of 5%,...

Your investment has a 9% chance of earning a 55% return, a 25%
chance of earning an 17% rate of return, a 31% chance of earning an
9.25% rate of return, a 20% chance of losing 16%,and a 15% chance
of losing 30%. What is the standard deviation of this investment?
Enter your answer rounded to two decimal places. Do not enter % in
the answer box. For example, if your answer is 0.12345 or 12.345%
then enter as 12.35

Your investment has a 9% chance of earning a 55% return, a 25%
chance of earning an 17% rate of return, a 31% chance of earning an
9.25% rate of return, a 20% chance of losing 16%,and a 15% chance
of losing 50%. What is the standard deviation of this
investment?

Your investment has a a 10% chance of losing 3%, a 50% chance of
earning a 10% rate of return, and 40% chance of earning a 15% rate
of return. What is the standard deviation of this investment?
Remember to state your answer as a percentage. For example,
99.99%.

What is the standard deviation of a stock that has a 10 percent
chance of earning 18%, a 10 percent chance of making 11%, a 40
percent chance of making 5%, and a 40 percent chance of making
22%?
A. 7.95%
B. 13.70%
C. 7.78%
D. 13.05%
You have $250,000 to invest in two stocks. Stock A has an
expected return of 15% and stock B has an expected return of 8%.
How much must you invest in each stock...

You are considering adding a stock to your portfolio that has an
equal chance of earning four possible stock returns (all four have
the same probability). The four possible returns are -10%, 5%, 20%,
and 35%. What is the expected return and standard deviation for
this stock?

You believe Orange, Inc. stock has a 20% chance of making 11%, a
30% chance of making 16% and a 50% chance of losing 6%. What is the
standard deviation of Orange, Inc. stock return?
A. 4.36%
B. 10.15%
C. 13.73%
D. 32.82%

For the coming year, Stock A has a 10% chance of losing 11%, a
20% chance of making 6%, a 60% chance of making 16% and a 10%
chance of making 40%. What is the standard deviation of Stock A’s
return?
A. 12.05%
B. 34.18%
C. 12.20%
D. 36.96%

Part 1: Dallas Star Inc.'s stock has a 40% chance of producing a
5% return, and a 60% chance of producing a 12% return. What is the
firm's expected rate of return? What is the firm's Standard
Deviation? What is the firm's Coefficient of Variation?
Part 2: Calculate the required rate of return for Dallas Star
Inc., assuming that (1) investors expect a 1.5% rate of inflation
in the future, (2) the real risk-free rate is 2.0%, (3) expected
market...

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