Question

Exercise Calculate the expected return, variance, standard deviation and coefficient of variation for the following stock:...

Exercise

Calculate the expected return, variance, standard deviation and coefficient of variation for the following stock:

Demand for Company’s Products

Probability of this outcome

Return if this occurs

Weak

.1

-50%

Below Average

.2

-5%

Average

.4

16%

Above Average

.2

25%

Strong

.1

60%

1.0
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The expected return, variance, standard deviation and coefficient of variation for the stock is as follows:

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculate the stock’s expected return, variance and standard deviation. Demand for the Company’s Products Probability of...
Calculate the stock’s expected return, variance and standard deviation. Demand for the Company’s Products Probability of This Demand Occurring Rate of Return if This Demand Occurs Weak 0.15 (30%) Below average 0.20 (3%) Average 0.35 18% Above average 0.20 25% Strong 0.10 31%
Company share’s return has the following distribution: Demand for the Company’s Products Probability of this demand...
Company share’s 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 -15 Average 0.4 16 Above Average 0.2 25 Strong 0.1 60 Required: Calculate the share’s expected return and standard deviation.
A stock's return has the following distribution: Calculate the standard deviation. Round your answer to two...
A stock's return has the following distribution: Calculate the standard deviation. Round your answer to two decimal places Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%) Weak 0.1 -25% Below average 0.2 -5 Average 0.4 8 Above average 0.2 25 Strong 0.1 55 1.0
Expected return A stock's returns have the following distribution: Demand for the Company's Products Probability of...
Expected return A stock's returns have 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 -9    Average 0.5 13   Above average 0.1 37   Strong 0.1 73   1.0 Calculate the stock's expected return. Round your answer to two decimal places. % Calculate the stock's standard deviation. Round your answer to two decimal places. % Calculate the stock's coefficient of variation. Round your answer to...
EXPECTED RETURN A stock’s returns have the following distribution: Demand for the Company’s Products Weak Below...
EXPECTED RETURN A stock’s returns have the following distribution: Demand for the Company’s Products Weak Below average Average Above average Strong Probability of this Demand Occurring 0.1 0.1 0.3 0.3 0.2 1.0 Rate of Return if this Demand Occurs (30%) (14) 11 20 45 Assume the risk-free rate is 2%. Calculate the stock’s expected return, standard deviation, coefficient of variation, and Sharpe ratio. 1Expected return = 0.1*(-30%) + 0.1*(-14%) + 0.3*(11%) + 0.3*(20%) + 0.2*(45%) = 13.90% Standard deviation =...
Problem 8-1 Expected return A stock's returns have the following distribution: Demand for the Company's Products...
Problem 8-1 Expected return A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 -44% Below average 0.1 -13    Average 0.4 16   Above average 0.1 33   Strong 0.3 63   1.0 Calculate the stock's expected return. Round your answer to two decimal places. % Calculate the stock's standard deviation. Round your answer to two decimal places. % Calculate the stock's coefficient of variation. Round your...
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of...
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.2 (34%) Below average 0.1 (12)    Average 0.4 16 Above average 0.2 40 Strong 0.1 47 1.0 A.Calculate the stock's expected return. Round your answer to two decimal places. % B.Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % C. Calculate the stock's...
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of...
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.2 (24%) Below average 0.2 (12)    Average 0.4 16   Above average 0.1 22   Strong 0.1 70   1.0 Calculate the stock's expected return. Round your answer to two decimal places. % Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the stock's coefficient of...
Calculate the coefficients of variation for the following stocks: Stock Expected return Standard deviation of return...
Calculate the coefficients of variation for the following stocks: Stock Expected return Standard deviation of return 1 0.065 0.29 2 0.04 0.17 3 0.15 0.24 1. What is the coefficient of variation for stock 1? 2.What is the coefficient of variation for stock 2? 3. What is the coefficient of variation for stock 3? 4. If you want to get the best risk-to-reward trade-off, which stock should you buy?
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (30%) Below average 0.2 (13)    Average 0.3 16    Above average 0.3 37    Strong 0.1 61    1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return:   % Standard deviation:   % Coefficient of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT