Question
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?
Homework Answers
Answer #1
The standard deviation of stock A’s returns = 17.85% Answer
Please let me know in case you have any queries and I will be happy to assist you
Not the answer you're looking for?
Similar Questions
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%
Hello please Use the following discrete probability distribution below to answer the following questions: &nbs
Hello please Use the following discrete probability distribution
below to answer the following questions:
X p(x)
1 0.16
2 0.17
3 0.33
4 0.16
5 0.10
6 UNKNOWN
1. a What is the probability that x = 6?
P(6) = 0.08 P(6) =
0.18 P(6) =
0.24 P(6) = 0.35
1.b) What is the mean of the probability
distribution?
µ =
2.92
µ =
3.11
µ =
3.51
µ = 4.00
1.c) What is the
standard...
FIN220 – Practice Questions (Module 3) A stock’s expected return has the following distribution: DEMAND FOR...
FIN220 – Practice Questions (Module
3)
A stock’s expected return has the following distribution:
DEMAND FOR THE
COMPANY’S PRODUCTS
PROBABILITY OF
THIS
DEMAND OCCURRING
RATE OF RETURN IF
THIS DEMAND OCCURS
(%)
Weak
0.1
(50)
Below Average
0.2
(5)
Average
0.4
16
Above Average
0.2
25
Strong
0.1
60
Calculate the stock’s
expected return and standard deviation.
Selena Maranjian invests the following sum of money in common
stock having expected returns as follows:
Common Stock
Amount Invested in
$...
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...
Normal probability distribution Answer the following questions, assuming that the rates of return associated with a...
Normal probability distribution Answer the
following questions, assuming that
the rates of return associated with a given asset investment are
normally distrib- uted; that the expected return, r, is
18.9%; and that the coefficient of variation, CV, is
0.75.
Find the standard deviation of returns,
s.
Calculate the range of expected return outcomes
associated with the following probabilities of occurrence: (1) 68%,
(2) 95%, (3) 99.7%.
Draw the probability distribution associated with your
findings in parts a and b.
1. Consider the following probability distribution for stocks A and B for questions 1 and 2...
1. Consider the following probability distribution
for stocks A and B for questions 1 and 2
STATE Probability Return on Stock
A Return on Stock B
1 0.10 10% 8%
2 0.30 20% 12%
3 0.60 25% 17%
Calculate the Expected return for Stock A and for Stock B
and calculate the variance for both Stock A and for
Stock B.
The Uniform Distribution Use the following information to answer the next ten questions in excel ....
The Uniform Distribution
Use the following information to answer the next ten
questions in excel . The data that follow are the square
footage (in 1,000 feet squared) of 28 homes.
1.5
2.4
3.6
2.6
1.6
2.4
2.0
3.5
2.5
1.8
2.4
2.5
3.5
4.0
2.6
1.6
2.2
1.8
3.8
2.5
1.5
2.8
1.8
4.5
1.9
1.9
3.1
1.6
The sample mean = 2.50 and the sample standard deviation =
0.8302. The distribution can be written as X ~
U(1.5,...
QUESTION 3 The next three questions involve stocks A and B which have the following characteristics:...
QUESTION 3
The next three questions involve stocks A and B which
have the following characteristics:
A
B
Covariance of stock’s return with the market .03 .01
Standard deviation of the stock's returns .15 .30
Correlation between returns of A and B .25
Standard deviation of the market .18
Expected rate of return of the market 8%
Risk free rate of interest 1%
a) If you are a fully diversified investor, does buying A or B
involve more risk?
b)...
Use the chart to answer the questions Year Return 1 2% 2 -6% 3 -1% 4...
Use the chart to answer the questions
Year
Return
1 2%
2 -6%
3 -1%
4 14%
5 -1%
6 5%
What is the average return on
this stock?
What is the standard deviation
of the annual returns?
What is the expected return on a stock, given the Beta
is 1.2, the risk-free rate is 2% and the Market risk premium is
6%?
What is the most you should pay for a share of common
stock that just paid a...
Use the following information for the next three questions. Years Stock Price Stock Return 0 210...
Use the following information for the next three questions.
Years
Stock Price
Stock Return
0
210
1
165
-21%
2
182
10%
3
120
-34%
4
163
36%
5
178
9%
6
198
11%
What is the mean and the standard deviation of this stock?
A. 1.5% and 25%
B. 1.85%, and 25.30%
C. 1.85% and 25.10%
D. 2.31% and 24.90%
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 18 minutes ago
asked 20 minutes ago
asked 36 minutes ago
asked 40 minutes ago
asked 43 minutes ago
asked 45 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago